The relatively mixed direction of price movement for the US dollar currency this week makes investors remain vigilant to reduce trading risk.
At the beginning of the week, the US dollar showed a decline following the trading reaction at the end of last week following the report of the United States (US) NFP employment data which declined in July.
The US dollar weakened as investors expected the Federal Reserve (Fed) to implement aggressive interest rate cuts in September.
However, the NFP report also triggered fears of a global economic recession that could support the US dollar currency as a safe-haven.
If you look at the price movement on the chart of the EUR/USD currency pair, the price has started to show a decline again after the surge that continued at the beginning of the week has reached a height of 1.10000.
The price drop on Tuesday yesterday returned to the 1.09000 zone and gave an early signal for a change in the bearish trend when the price started to move below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame of the chart.
The price movement was flat towards the end of the New York session as the US dollar moved weaker again after showing strengthening in the previous session.
The price is still hovering above the 1.09000 zone in the Asian session this morning (Wednesday), but if it starts to break lower, the risk for a price drop is high.
The decline will continue to return to the focus zone last week which is around 1.08000.
On the other hand, if the price makes an increase and crosses the MA50 barrier again, the price will go back to 1.10000 to test the resistance level.
A move higher above that resistance will push the price to record new highs while continuing the previous bullish move.
