The US dollar's decline continued from the beginning of last week until Wednesday yesterday as market sentiment was still seen as risky, focused on issues related to the Donald Trump administration's policies.
United States (US) economic data was also given focus with somewhat mixed readings in the New York session yesterday.
The ADP employment report showed a higher increase in January than expected and also the previous month's reading.
The US ISM survey service PMI showed a decline for January reading, slightly bleak compared to the same data reading for the manufacturing sector published on Monday, which increased.
Examining the movement on the EUR/USD currency pair chart, the price has maintained an upward pattern until breaking through the 1.04000 level yesterday.
A new high was reached around 1.04400 before the price retreated down to near 1.04000 again at the end of the New York session.
The price action remains bullish with a signal above the Moving Average 50 (MA50) support line on the 1-hour timeframe of the EUR/USD chart, which expects higher gains to continue.
If the rise continues, the price is expected to surpass yesterday's high before recording new highs again this week.
The target is to head towards the resistance zone at 1.05000 as tested in last week's trading.
However, if the price plunges from the 1.04000 level past the MA50 support, investors will assess the price as a bearish signal before the price is expected to drop to around 1.03000.
Further declines will continue to approach the January support zone again at 1.02000.
