Although the effect is a bit slow, the US dollar has finally started to show its depreciation towards the end of the week.
Last Wednesday, the US dollar strengthened when the consumer inflation data (CPI) of the United States (US) was published.
But on Thursday yesterday, the king of the currency began to move weakly even though the producer inflation data (PPI) was published with positive figures.
Meanwhile, the Euro strengthened when the European Central Bank (ECB) announced a reduction in the refinancing rate by 60 basis points to 3.65%.
This was prompted by a follow-up speech by ECB President Christine Lagarde who changed her previous dovish tone to a more cautious one, stating that the central bank will first assess the latest economic data before deciding on its next policy.
It can be seen that there is a change in price direction on the EUR/USD currency pair chart yesterday with a bullish signal.
The price previously hovered slowly in the 1.10000 support zone before bouncing up in yesterday's New York session crossing the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart.
The increase continued until trading continued into the Asian session this morning (Friday) nearing the 1.11000 level, which is among the price target levels.
If the level is successfully broken, the bullish price pattern will continue to reach again the height at the end of last week around 1.11500.
However, if the price fails to maintain the increase, the expectation for the price drop again is to test the 1.10000 support zone again.
A break lower will trigger a bearish signal for the price to record a new low towards the target at 1.09000.
