The release of United States (US) producer price index (PPI) data in the New York session yesterday has pushed the strengthening of the US dollar currency.
The PPI data reading for January that rose above forecasts further supported expectations for the Federal Reserve (Fed) to maintain policy tightening measures for a longer period.
Cleveland Fed President Loretta Mester's hawkish statement also caught the market's attention when she said interest rate hikes will continue and the Fed may not cut interest rates this year.
Although it does not show a significant movement in the market, it still sees the US dollar moving stronger than other major currencies.
The price chart of the EUR/USD currency pair saw the price fail to be above the 1.07000 level which became a resistance for the price on Thursday trading yesterday.
The decline returned to the current support level around 1.06600 in the New York session and continued in the Asian session this morning (Friday).
Still signaling bearish movement, the price continues to hover below the Moving Average 50 (MA50) barrier level on the 1-hour time frame of movement on the EUR/USD chart.
A further decline is expected lower towards the 1.06000 level to record the latest 6-week low.
Breaking through that level allows the price to reach around 1.05000.
However, a change in the price direction at the end of the week could see a surge again in the final sessions.
If it crosses the 1.07000 level and the MA50 barrier, the rise will continue towards the resistance at 1.08000.
