A change in price patterns occurred on Tuesday's major charts yesterday as the US dollar began to move weakly.
This situation was driven by recovering market sentiment and the release of PMI data for the manufacturing and services sectors saw readings for the United States (US) being down for April.
But analysts see this situation as only temporary following the expectation of the potential for the king of the currency to strengthen again based on the indications presented by Federal Reserve (Fed) Chairman Jerome Powell and other FOMC members.
The next indicator will be observed through the Fed's focus data this week, which is the Gross Domestic Product (GDP) data for the first quarter of 2024 and the PCE price index at the end of the week.
If both data readings show an increased number, it is likely to support the strengthening of the US dollar again.
Looking at the chart of the EUR/USD currency pair, the price is seen to have started to show signs of breaking out of the flat zone last week.
A bullish trend change signal was observed earlier when the price moved above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart yesterday.
The price increase in the New York session was seen testing the resistance level at 1.07000 and continuing trading in the Asian session this morning, the price hovered slowly above that level.
Expectations for a higher rise after this will target the next concentration level at 1.08000.
However, be careful if the price reverses again, a price drop could occur below the 1.07000 level.
Furthermore, the support zone hit last week at 1.06000 will be tested again if the decline continues.
