The movement pattern for the US dollar currency since the beginning of the week looked gloomy, but showed strengthening in the New York session yesterday when closing trading for the month of October.
The PCE price index, which measures the personal spending of United States (US) consumers published yesterday, met forecasts for a slight increase.
This followed a good reading on Wednesday's ADP data which recorded a strong jump in private job growth even though the preliminary reading of third quarter US economic growth was slightly lower than forecast.
The ADP data gave a positive signal for the US NFP jobs report for October which will be published in the New York session tonight.
If you look at the movement on the chart of the EUR/USD currency pair, the price is increasingly showing an increase after passing the previous level of 1.08000 to approach the target zone of 1.09000.
But analysts who expect the US dollar to still have the potential to strengthen ahead of the FOMC meeting next week make investors wary of the current move.
The price reaction at the 1.09000 zone will be observed for further directional signals.
In the event of a strong surge breaking through that important zone, the price bullish trend is expected to continue with the target moving to the height of 1.10000.
Meanwhile, if there is a price retreat again, it is likely that the previous concentration level at 1.08000 will return to close to the price.
A price drop below that level will invite risks that expect a more severe fall and could record a new low towards the 1.07000 target.
