The hawkish speech by the Federal Reserve (Fed) governor Christopher Waller has supported the strengthening of the US dollar heading into the end of the week in addition to the economic data of the United States (US) published with positive figures.
According to Waller, the central bank does not need to rush to lower interest rates and suggests that the current tight policy be maintained for a longer period.
Meanwhile, the last reading of the US economic growth data for the fourth quarter of 2023 recorded an increase compared to the forecast to remain the same as the previous figure.
Several other data including home sales data and consumer confidence survey also each recorded better numbers than forecast.
The strengthening of the US dollar has pressured several major currencies such as the Euro and investors are watching the price movements that occur on the EUR/USD currency pair chart.
The decline to the latest 6-week low was exhibited by the price yesterday after the 1.08000 zone was successfully penetrated.
There was an attempt to increase the price again in the New York session yesterday, but the price ended the trading session below the 1.08000 level again.
The barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart is seen to fail to be crossed and the price tends to display a bearish movement.
The slow decline in prices in the Asian session this morning (Friday) returned to the lowest level reached yesterday around 1.07750 with the expectation that the decline will continue.
The target is to go up to around 1.07000 if the US dollar manages to maintain the strengthening to close the trade at the end of March.
However, if the situation changes and sees the price jump again, a break above the 1.08000 zone and the MA50 barrier will be an early trigger for a trend change signal.
An upward movement will occur for the price to reach a high level at the beginning of the week around 1.08600 before heading to the target at the 1.09000 concentration zone.
