Back to holding back the fun for other major currencies, the US dollar has started to show a recovery with a clear strengthening pattern in yesterday's New York trading session.
United States (US) new home sales data came in better than forecast, but investors remained cautiously awaiting the release of second quarter 2024 US economic growth data tonight for the final reading.
Market analysts still see the tendency for the US dollar to move weak again following the Federal Reserve (Fed) remains expected to extend their policy easing at the remaining meeting at the end of 2024.
The price movement on the chart of the EUR/USD currency pair has started to show a change in direction as the price rise fails to continue.
As expected at the 1.12000 focus zone, the price tested it but failed to continue the rise before a significant price plunge occurred in the New York session.
From that resistance zone, the price has plunged around 90 pips before trading slowly in the early Asian session this morning (Thursday) around 1.11300.
The signal of a bearish trend change makes investors wary of the price movement which is now below the Moving Average 50 (MA50) barrier line on the EUR/USD chart.
If yesterday's momentum is maintained, the price is seen to approach the 1.11000 zone and the price reaction around that will be watched to assess further direction.
The continued decline will target the previous support zone at 1.1000.
On the other hand, if the price jumps back past the MA50 barrier, it will be a signal for the price to resume the previous bullish movement.
The 1.12000 resistance is the target to be broken before the price is able to record the latest high level.
