Focusing on the New York session yesterday, the consumer price index (CPI) data of the United States (US) has shaken the market.
The latest annual inflation reading was the lowest increase in 2 years at 4.0% for May, from 4.9% the previous month.
The US dollar traded down to a 3-week low following the impact of the release of important data that indicated the possibility that the Federal Reserve (Fed) will maintain interest rates at the FOMC meeting early Thursday morning.
Space was used by major currencies including the Euro to continue strengthening in value ahead of the European central bank (ECB) policy meeting on Thursday.
German economic sentiment ZEW survey data published in yesterday's European session also showed a recovery in the latest readings.
On the price chart of the EUR/USD currency pair, the price is seen to have continued to rise to the target level of 1.08000.
However, the further surge in prices did not continue showing the dismal performance displayed until the end of the New York session.
Prices that remain above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart are expected to continue rising higher.
However, investors are likely to be more cautious awaiting the results of the FOMC meeting to determine a clearer direction.
If the price manages to jump higher, the continued bullish movement is seen to lead to the concentration zone at 1.09000.
Next, the height zone of 1.1000 will be targeted to be reached after 5 weeks of price falling below that level.
As for the expectation for a price drop, failing to pass the 1.08000 zone and reflecting downwards, the price can drop again past the MA50 support level to trigger the initial expectation of a trend change.
The price drop will lead back to the previous concentration level around 1.07000 before continuing the drop to the target of 1.06000.
