After the significant strengthening of the US dollar after the FOMC meeting early yesterday morning, the momentum faded slightly for the next few trading sessions.
However, the US dollar is still moving steadily and is supported by the US (US) economic growth data report published in the New York session yesterday.
The latest reading for the third quarter of 2024 growth, which is forecast to remain at 2.8% as before, instead increased to 3.1%.
The latest indicator for the US dollar will be observed in the New York session tonight (Friday), which is the US PCE price index, which measures consumer spending, which is also an important indicator for the Federal Reserve (Fed) in assessing inflation.
Examining the movement on the EUR/USD currency pair chart, the price plunge is shown to have reached 1.03500 during the reaction to the FOMC meeting.
Then the price rose slowly in the Asian and European sessions yesterday, but was seen to have failed to hold above the 1.04000 zone before falling below it again to continue trading in the New York session.
The price finally leveled off around 1.03600 at the end of the session and remained slow to resume trading in the early Asian session this morning (Friday).
The price trend is still seen to continue the downward pattern with a bearish signal of the price being below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe on the EUR/USD chart.
The nearest target is to test 1.03000 and if it continues to decline lower, the level around 1.02400 is seen as the price focus.
However, if the price surges back above the 1.04000 zone, there will be an early signal for a trend reversal.
A higher increase if continued will aim to return to the focus zone before the plunge occurs, which is 1.05000.
