The US dollar's decline that occurred at the beginning of the week did not last long as the United States (US) economic data published on Tuesday again strengthened the king of currencies.
The US ISM services PMI data came in with a strong reading that exceeded expectations for December while the JOLTS employment data recorded an increase in November 2024 with the highest figure in 6 months.
It is clear that the US dollar showed a positive reaction in the New York session yesterday following the positive data published.
Price movements were observed on the EUR/USD currency pair chart with a change in direction again occurring.
In the European session yesterday, the price managed to make an increase to retest the level reached during the previous day's surge around 1.04300 before later plunging again.
Almost 100 pips of decrease were recorded for the price to end trading at the end of the New York session around 1.03400.
The significant decline in price that has returned to move below the Moving Average 50 (MA50) barrier on the 1-hour timeframe on the EUR/USD chart signals a bearish movement for the price.
Expectations are for a return to around 1.03000 as the immediate target for the downtrend to continue.
After breaking through that level, the price will target the 1.02000 zone to record a new low, surpassing last week's trading.
However, if the increase occurs again, the 1.04000 level that is surpassed will retest the 1.04300 resistance that was not successfully surpassed for 2 consecutive days of increases earlier this week.
If it is successful, the increase will continue higher for the price to head towards the 1.05000 focus zone.
