The US dollar in the early trading of the New York session yesterday was seen to show a mixed movement reaction when the economic data of the United States (US) was published.
The latest reading for second-quarter 2024 US economic growth remained at 3.0% as expected, and jobless benefit claims data and durable goods orders showed better readings than forecasts.
However, the US dollar was later seen to have moved weakly again towards the end of the session, failing to continue the recovery pattern of the previous day.
The US PCE price index data will influence the movement of the US dollar in the trading of the last closing session of this week.
If observed on the chart of the EUR/USD currency pair, there was a momentary change in price direction after the price increase failed to cross the 1.12000 resistance zone.
The price made a decline to around 1.11300 before the increase was shown again in the New York session yesterday to head back to the 1.12000 target.
The price moved back above the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart which restored the signal for a bullish movement for the price.
Slow at around 1.11700 for this morning's Asian trade (Friday), prices are expected to continue rising to once again test the 1.12000 resistance.
If the important zone is successfully penetrated, the price will record its latest high level for a period of 14 months after surpassing the trading level last August.
However, any possible situation could occur at the end of the week such as profit taking activity in the market which could push the price down again.
The expectation for a bearish pattern for the price is to head towards the current support zone at 1.11000.
A drop below the zone will be a signal for a bearish trend change with the target moving to around 1.10000.
