Current factors evaluated in the market clearly drive the direction of price movement on the chart of the EUR/USD currency pair.
The US dollar is seen to maintain its positive performance throughout the week which is also supported by the United States (US) retail sales data published yesterday with an encouraging reading.
While the Euro continued to depreciate following the decision of the European Central Bank (ECB) policy meeting yesterday, it fulfilled the forecast to further lower its interest rate by 25 basis points to 3.40%.
Thus, the US dollar which remains strong while the Euro is getting depressed, the price on the EUR/USD chart continues to move in a bearish trend, seeing the price remain below the barrier line of the Moving Average 50 (MA50) in the 1-hour time frame.
After last Wednesday the price dropped below the important 1.09000 zone, the decline continued yesterday to record the latest 11-week low.
The slow price increase in the European session yesterday around 1.08700 then changed direction when the price was seen plunging towards 1.08000.
Almost 10 pips left to touch the 1.08000 level, but the price bounced a little and flattened slowly until it continued in the trading session of Asia this morning (Friday).
A lower drop will be expected to break through the 1.08000 support zone before the next price target moves to 1.07000.
On the other hand if the price jumps up again past the MA50 barrier, the 1.09000 zone which is seen as a resistance during price making will try to break through.
A successful move higher will lead back to the previous concentration level at 1.10000.
