The economic data of the United States (US) published in the New York session yesterday has made the US dollar experience a significant decline.
ADP employment data recorded weak growth again raising expectations for the Federal Reserve's (Fed) policy easing measures.
Pressure on the US dollar increased as subsequent ISM survey data showed the US service sector contracted significantly in June.
However, the significant fall of the US dollar was limited again as the market examined the report of the minutes of the FOMC meeting with a still hawkish tone.
Thus, it can be observed the reaction and price movement on the chart of the EUR/USD currency pair yesterday which excited investors.
The slow price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart in the Asian session yesterday has made investors ready for a bullish price trend.
The rally finally happened and the price managed to overcome the high level of the beginning of the week before reaching the target zone of 1.08000.
As expected by analysts, an interesting reaction was displayed when the price testing the resistance zone failed to extend the climb higher.
On the other hand, the face price retreated slightly as the minutes of the FOMC meeting stole the spotlight and remained sluggish below the 1.08000 zone until trading resumes in the Asian session this morning.
With yesterday's surge momentum, there is still potential seen for the price to continue rising higher if it manages to be above the 1.08000 level again.
For a higher bullish target, the price is expected to head towards the previous concentration zone at 1.09000.
On the other hand, if the price starts to fall again, a drop to the MA50 support line will be a signal that the bullish movement of the price has failed to continue.
The price is likely to return to the support zone around 1.07000 which has been the focus of recent weeks.
