The US dollar was still showing a dismal move in Thursday's trading overnight, but was seen not to continue the downward momentum which was marked on Wednesday after the release of US (US) inflation data.
US output price index data has registered its first fall in more than 2 years, shedding 0.5% for July as of last night's New York session.
Investors, however, are on the lookout for market moves at the end of the week following a split in opinion as to whether the Federal Reserve's (Fed) monetary base setting will continue its aggressive interest rate hike or slow down its rate hike.
The focus will also be on the US user confidence review data in today's New York session to assess the movement of the US dollar in closing trades this week.
Examining the price movement on the chart of the EUR/USD currency pair, after the price jumped to the level of 1.03600 when the reaction to inflation data was published last Wednesday, the price again tested that level on Thursday overnight but failed to continue rising higher beyond it.
On the other hand, the investor's expectation to see the price reach the 1.04000 target level will not be realized if the price initially shrunk in the New York session last night towards the original 1.03000 zone so that trading will continue into the Asian session this Friday morning.
However, a price movement that is still above the support level of the 50 Moving Average (MA50) can still provide an expectation for the potential for prices to increase again to perpetuate the movement in the bullish trend.
Should the gains succeed, the resistance level at 1.04000 remains a target for price testing as well as overcoming the highs reached since Wednesday.
And a rise higher beyond that level will also prolong the price to go up to around 1.05,000 while recording its latest 6-week high.
On the other hand, if the price drops below the 1.03000 level and moves below the MA50 level, investors need to be on the lookout for signs of a decline in the initial price.
The range for the price decline is seen to be testing some of the previous support levels at 1.02400 and beyond the support level 1.01600.
