There is a change in price direction for major currencies as trading approaches the end of the week with a focus on the latest published data.
The Euro managed to stage a recovery as German manufacturing and services PMI data posted good numbers for October, up from the previous month and beating forecasts.
The same PMI data for the United States (US) did not show a significant change in numbers compared to before, witnessing a decline in the value of the US dollar in the New York session yesterday.
But analysts still see the potential for the US dollar to resume its strengthening pattern that has been successfully maintained for 4 consecutive weeks before.
If observed on the chart of the EUR/USD currency pair, the price has shown a gradual improvement from the 3-month low reached last Wednesday around 1.07600.
The rise in price has returned above the 1.08000 level and signaled the beginning of a trend change when it started to move above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.
The price reached a high near the 1.08300 level at the end of the New York session before leveling off around that resuming trading at the beginning of the Asian session this Friday morning.
If the price increase continues, the price is expected to return to the previous concentration zone around 1.09000.
After the bullish signal is clearer, the price increase will continue with the next target at the height of 1.10000.
However, if the price is pressed to fall back below 1.08000, it is likely that the previous bearish pattern will resume.
The price can drop past the level reached last Wednesday before recording the new low level targeting around 1.07000.
