The focus is on the economic growth data of the United States (US) published in the New York session yesterday with somewhat surprising readings.
US Gross Domestic Product (GDP) for the first quarter of 2024 showed a slow preliminary reading of 1.6% compared to a forecast of 2.5%.
This figure shows a significant difference compared to the record in the last quarter of 2023 at 3.4% and shows the slowest growth since the first half of 2022.
The US dollar showed strengthening at the start of the New York session, but after data was published heading into late trading, the currency moved weakly.
Examining the price chart of the EUR/USD currency pair, the price is seen moving in an upward pattern with a reaction observed when the data is published.
The price has reached a height of around 1.07400 before plunging below the 1.07000 level during the trading reaction at the beginning of the New York session yesterday.
However, the price bounced back up again after also testing the support line of the Moving Average (MA50) on the 1-hour time frame on the chart.
The price increase towards the end of the session saw the high level of 1.07400 close to the price again.
The pattern of price increases is expected to continue with a tendency for the US dollar to move weakly, but a clearer direction will be determined after the PCE price index data is published later tonight.
If the rise continues, the price will target the previous concentration level of 1.08000 to record the latest 2-week high.
Meanwhile, if the price decline occurs, the current support level of the price at 1.07000 will be tested again like yesterday.
A further drop in price after breaking through the zone will expect the price to reach last week's support again which is 1.06000.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
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