EUR/USD Analysis – Missing $1.0700, Price Plunges 100 Pips!

<p>&nbsp;The economic activity data that was the focus of Tuesday's trading yesterday had an impact on price movements for major currencies.</p><p><br /></p><p>The European manufacturing and services PMI data reading that was in focus yesterday evening saw a rather gloomy figure for October.</p><p><br /></p><p>However, the story in the New York session is different, the same data reading for the United States (US) is stronger than forecast and shows a positive development for the current economic activity.</p><p><br /></p><p>Thus, the US dollar strengthened significantly while the Euro currency again experienced depreciation.</p><p><br /></p><p>On the chart of the EUR/USD currency pair, the price has plunged again after the initial rise almost touched the concentration level of 1.07000.</p><p><br /></p><p>The price has plunged back below the 1.06000 level and slowed around that resuming trading in the Asian session this morning (Wednesday).</p><p><br /></p><p>The price drop that has moved below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart gives an early signal for a bearish trend change again.</p><p><br /></p><p><br /></p><p>With yesterday's momentum, the price is expected to continue further declines to head back to the previous focal support level at 1.05000.</p><p><br /></p><p>If that level is successfully passed, the next price will be seen to test the zone around 1.04500.</p><p><br /></p><p>However, if the price manages to bounce back above the 1.06000 level and then break through the MA50 barrier, this will be an indication for the rally to continue again.</p><p><br /></p><p>The target is still at 1.07000 which was not successfully tested yesterday, becoming an important obstacle for the price to break through.</p>