EUR/USD Soared, Then Plunged, Then Flattened!
Price movements at the opening of the market early in the week were quite mixed with different patterns for three different sessions, especially for the US dollar.The US dollar continued its decline in the past week at the opening of the Asian session yesterday morning, but showed a re-strengthening in the European session before moving flat again in the New York session.Investors are monitoring the progress of economic opening in China while evaluating the country's economic growth data that was just published a while ago.Based on published data, China's economic growth in the last quarter was at a moderately good rate although slightly down from the previous quarter, compared to more gloomy forecasts.Examining the price movement on the chart of the EUR/USD currency pair, the price which initially jumped in the Asian session to a high level of 1.08700 then plunged again 70 pips to the level of 1.08000 which became the support zone when making the price.The price movement in the New York session was flat above the zone, but the price started hovering below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart, giving an early signal for a trend change.If the price pattern starts to change, the 1.08000 support zone will be tested and likely to be broken for the price to continue its decline to lower levels.The continued decline is seen to return to the RBS zone (resistance becomes support) at 1.07000.However, investors are still waiting for a clear factor to support the strengthening of the US dollar again, otherwise the US dollar will continue to be expected to continue its weak movement last week.If the increase happens again, the high level reached at the beginning of the week yesterday will be challenged for the price to record the latest high level of 9 months.The target for a higher increase is to test the 1.09000 zone before heading to the next concentration height which is at 1.10000.
Price movements at the opening of the market early in the week were quite mixed with different patterns for three different sessions, especially for the US dollar.
The US dollar continued its decline in the past week at the opening of the Asian session yesterday morning, but showed a re-strengthening in the European session before moving flat again in the New York session.
Investors are monitoring the progress of economic opening in China while evaluating the country's economic growth data that was just published a while ago.
Based on published data, China's economic growth in the last quarter was at a moderately good rate although slightly down from the previous quarter, compared to more gloomy forecasts.
Examining the price movement on the chart of the EUR/USD currency pair, the price which initially jumped in the Asian session to a high level of 1.08700 then plunged again 70 pips to the level of 1.08000 which became the support zone when making the price.
The price movement in the New York session was flat above the zone, but the price started hovering below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart, giving an early signal for a trend change.
If the price pattern starts to change, the 1.08000 support zone will be tested and likely to be broken for the price to continue its decline to lower levels.
The continued decline is seen to return to the RBS zone (resistance becomes support) at 1.07000.
However, investors are still waiting for a clear factor to support the strengthening of the US dollar again, otherwise the US dollar will continue to be expected to continue its weak movement last week.
If the increase happens again, the high level reached at the beginning of the week yesterday will be challenged for the price to record the latest high level of 9 months.
The target for a higher increase is to test the 1.09000 zone before heading to the next concentration height which is at 1.10000.
