A change in the price pattern began to take place in the market on Thursday trading yesterday when the US dollar was seen to recover from the previous decline.
The relatively risky market sentiment at the end of the week gave support to the US dollar, but analysts warned that the strengthening of the US dollar was only temporary following the clear indication given by the Chairman of the Federal Reserve (Fed) Jerome Powell for the direction of their monetary policy.
Meanwhile, the Euro plunged after the decision of the European Central Bank's monetary policy meeting yesterday.
The European Central Bank (ECB) kept interest rates unchanged at 4.25% and President Lagarde was seen to give no indication of further monetary policy.
Looking at the movement on the chart of the EUR/USD currency pair, the price has reached a 4-month high of 1.09480 last Wednesday.
However, a bearish pattern was displayed on Thursday yesterday which saw the price fall back to the 1.09000 concentration zone.
The price movement hovering around that continued trading in the Asian session this morning (Friday).
The initial signal of a bearish trend change is identified when the price starts to move down below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the EUR/USD chart.
A further decline below the 1.09000 zone would expect the price to head back up to 1.08000.
On the other hand, if the price manages to bounce back from the 1.09000 zone, the high level reached last Wednesday will try to be challenged again.
The price has the potential to record new highs if the price surge momentum is strong before this week's trade draws to a close.
