The declining performance displayed by the US dollar in trading yesterday Wednesday has changed the pattern of price movements on major charts.
The published economic data from the United States (US) is seen to have failed to stimulate the strengthening of the US dollar which has been traded mixed since the opening of the week.
With the US dollar's depreciation, most other major currencies are now taking the opportunity to recover.
The euro, among others, is showing a recovery after falling to its lowest level this year against the US dollar last week.
It can be seen on the EUR/USD currency pair chart, the price is showing a recovery after falling to its lowest level last week reaching 1.03330.
At the beginning of this week, the price was seen hovering around 1.05000 before on Wednesday the price increase successfully continued beyond the resistance zone.
In the New York session, the price approached the 1.06000 support level tested in last week's trading but still remained to prevent the price from continuing its rise.
Slow movement below the zone continued trading in the Asian session this morning (Thursday).
If the price increase successfully continues to break through the 1.06000 resistance, the price will display a bullish pattern to record a new 2-week high.
The next target is to reach the 1.07000 level.
However, if the price retreats again after failing to maintain yesterday's increase, the 1.05000 zone will be approached again and the price reaction around it will be observed.
A break lower will give a bearish signal to the price which is expected to head towards the 1.04000 level or return to last week's low.
