EUR/USD Analysis – Why US Data Is Weak, Price Jumps 100 Pips!

<p>&nbsp;The more thrilling the investors are towards the trade end of the week which is sure to be more turbulent, the US dollar currency in the New York session yesterday was already fiercely showing its stripes.</p><p><br /></p><p>Price movements react to published economic data and drive expectations for Federal Reserve (Fed) monetary policy for the September meeting.</p><p><br /></p><p>The house price index data was published quite well earlier in the session, but the United States (US) consumer confidence data and JOLTS job offers were disappointing.</p><p><br /></p><p>The US dollar which initially showed strengthening then weakened more significantly until the end of the New York session.</p><p><br /></p><p><br /></p><p><br /></p><p>It can be observed on the chart of the EUR/USD currency pair, the price made an initial decline and slightly exceeded the 1.08000 level.</p><p><br /></p><p>However, failing to continue the decline, the price rebounded above the 1.08000 level until an increase of around 100 pips reached 1.08900.</p><p><br /></p><p><br /></p><p>The slow price movement at that height continues the trading of the Asian session this morning (Wednesday), with the expectation that the bullish movement will continue as the price is above the support level of the Moving Average 50 (MA50) on the 1-hour time frame of the EUR/USD chart.</p><p><br /></p><p>The price increase is expected to test the resistance zone at 1.09000 and if it succeeds in breaking through to a higher level, the focus will be directed back to the 1.10000 level.</p><p><br /></p><p>On the other hand, if there is a price drop again, the 1.08000 level will be targeted again and the price reaction around that will be observed.</p><p><br /></p><p>If it breaks lower, the price risks falling to the 1.07000 level and making a new 12-week low.</p><p><br /></p><p>Investors will be more cautious today ahead of the ADP employment data and the US economic growth data (GDP) that will be published in the New York session shortly.</p>