Without wasting much time, the US dollar continues to show excellent performance for the opening of 2025 with a series of strengthening continued for 3 consecutive days.
As expected, the US dollar will strengthen again following a clear signal from the last FOMC meeting of 2024 in December.
The US unemployment claims data published yesterday also recorded better figures than expected, supporting further strengthening of the US dollar in the New York session.
A clear movement pattern can be observed on the EUR/USD currency pair chart with a decline reaching a new 3-year low.
Yesterday's daily decline of around 150 pips was recorded above the expected level of 1.03000 until the price reached around 1.02250.
Price movement began to slow at the end of the New York session and continued the opening of the Asian session this morning (Friday), the price slowed down around 1.02700.
With yesterday's price plunge momentum, the price signal is bearish as it moves below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe on the EUR/USD chart.
It is likely that the price will approach around 1.03000 before continuing its further decline with the expectation that the US dollar will remain strong.
The price will be pushed towards the latest low with a target of around 1.02000.
However, on the contrary, if the price situation jumps higher beyond the 1.03000 level, the price has the potential to recover towards the 1.04000 level again.
A trend change signal will also be observed if the price increases in the final trading sessions at the end of this week.
