There was a change in price direction on the main charts as the US dollar moved weaker again in trading yesterday Thursday.
It was quite surprising for investors with this situation as market sentiment was still considered risky with the announcement of President Donald Trump's new tariffs in addition to investors monitoring the development of the Russia-Ukraine war negotiations held in Saudi Arabia.
The focus is now on the PMI data report for the manufacturing and services sectors to be published in the European and New York sessions today (Friday).
The European currency and the US dollar are expected to show interesting movements following the reaction to the data which will assess the current health of the economy.
Examining the price movement on the EUR/USD currency pair chart, there was a price rebound after the previous decline touched the focus level at 1.04000.
The price increase on Thursday yesterday was seen to have reached the 1.05000 level again in the New York session, seeing the price testing the resistance zone like the situation last week.
The price has also broken through the 50-day Moving Average (MA50) on the 1-hour chart of the EUR/USD, signaling a bullish trend change.
The price moved slowly in the Asian session this morning (Friday) below the 1.05000 level while testing the key resistance.
If the price manages to break higher, a new 10-week high will be recorded before the end of this week with a target of around 1.06000.
If not, the price could likely decline again from the 1.05000 zone before heading back to the 1.04000 level tested last Wednesday.
Next, for further declines lower, investors will be watching for any signs of bearish movement in the price.
