Risky market sentiment at the end of the week is a factor supporting the US dollar currency from falling deeper.
Investors are preparing to expect a decline in the US dollar following the clear dovish signal delivered by Federal Reserve (Fed) Chairman Jerome Powell at the FOMC meeting early Thursday morning yesterday.
The majority of the market expects an interest rate cut by the Fed in September and will be watching tonight's NFP jobs report for further reinforcement of that view.
The US dollar managed to show strengthening in the European session yesterday, but weakened again at the opening of the New York session.
The ISM survey data of the United States (US) manufacturing sector published yesterday also came with a declining reading.
Observing the price movement on the EUR/USD currency pair chart yesterday, the price is still moving in a bearish trend recording the latest low.
The decline in the European session broke the support level at 1.08000, but the price bounced back above it again at the beginning of the New York session.
The price increase is blocked at the Moving Average 50 (MA50) line on the 1-hour time frame on the EUR/USD chart which maintains an indication of a bearish trend for the price.
The price movement slowed at the close of the session and continued at the opening of the Asian session this morning (Friday) below the 1.08000 zone.
If the decline lower continues, the target is for the price to head up to around 1.07000 before investors watch for a reaction to that concentration zone.
On the other hand, if the price manages to bounce back above the 1.08000 level, crossing the MA50 barrier will be a signal for an upward movement of the price to a higher level.
The price will return to target the resistance zone at 1.09000 if a rally occurs after a clear trend reversal is displayed.
