Fall Again! EUR/USD Plunges To $1.0700

<p>&nbsp;Market analysts assessed the market sentiment to be at risk again due to concerns directed at the slow growth of the European and Chinese economies.</p><p><br /></p><p>Services sector activity in China recorded a declining figure for August, as well as the final reading of the services PMI in Europe published yesterday showed a contraction.</p><p><br /></p><p>As a result, the Euro currency has been trading lower this week while the US dollar has shown its strengthening yesterday to continue the momentum at the end of last week.</p><p><br /></p><p>German manufacturing data as well as European retail sales will be watched today and in the New York session, the ISM survey of the United States (US) service sector will be noticed.</p><p><br /></p><p><br /></p><p><br /></p><p>Examining the price chart of the EUR/USD currency pair yesterday, the price hovering in the 1.08000 zone then showed a plunge of almost 100 pips.</p><p><br /></p><p>Almost reaching the concentration level at 1.07000, the price then slowed down and closed the New York session trading around 1.07200.</p><p><br /></p><p><br /></p><p>The price movement remains bearish as expected where the price is still below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart.</p><p><br /></p><p>If the US dollar continues to strengthen, the price may continue to drop lower, breaking through the 1.07000 level and continuing to record a 13-week low.</p><p><br /></p><p>The latest target for the price to drop lower is to head around 1.06000.</p><p><br /></p><p>Meanwhile, for the expectation of a price increase again, the 1.08000 level will be the initial resistance to be tested which has prevented the price increase at the beginning of the week.</p><p><br /></p><p>Also breaking through the MA50 barrier will signal a bullish trend change and the price target will change to the 1.09000 zone again.</p>