After the recovery displayed by the US dollar at the beginning of the week, the king of the currency again moved gloomy in the trade yesterday.
This is following the market's reaction to the speech delivered by Federal Reserve (Fed) Chairman Jerome Powell who attended the ECB forum in Portugal yesterday with President Christine Lagarde.
Not much changed like Powell's statement at the last FOMC meeting, the market evaluated the dovish tone when he commented on the disinflation trend that is believed to be heading towards the central bank's target.
The US dollar was again weak in the New York session yesterday as investors eyed the next indicators heading into the end of the week such as APD data, FOMC minutes and the NFP report.
Assessing the price movement on the chart of the EUR/USD currency pair, prices fell in the Asian session yesterday nearing the level of 1.07000, but there was a rebound in the New York session when the market reacted to Powell's speech.
The price movement slightly crossed the Moving Average 50 (MA50) line on the 1-hour time frame of the chart to give an early signal of a bullish trend again.
If the rise continues successfully after this, the high level at the beginning of the week may be overcome before the price records the latest high level.
A higher target for the price is to test the 1.08000 zone which is seen as the next focal resistance in the continuing bullish pattern.
However, if the price suddenly shows another plunge, the decline will test the important 1.07000 zone that has been the focus for several weeks.
If the price falls sharply below it, the latest low will be seen with the expectation for the price to reach up to around 1.06000.
