The US dollar is trading more volatile as the market gets closer to the release of the United States (US) inflation data report for July.
Expectations on the forecast figures for the latest consumer price index (CPI) will change from the previous trend, with the forecast figures increasing from 3.0% to 3.3%.
This data will be an important indicator for the Federal Reserve (Fed) in further policy setting when several different views by Fed members are floating in the market.
On the chart of the EUR/USD currency pair, it can be observed that the price movement was flat during yesterday's New York session showing that the market is on alert.
The rise that started from the previous Asian session was seen to fail to cross the 1.10000 level which remains a resistance for the price.
Analysts also watch the price movement slowly hovering at the Moving Average 50 (MA50) line on the 1-hour time frame of the EUR/USD chart to get an indication of the direction of further movement.
If the price makes an increase and breaks through the resistance at 1.1000, the price will go to the high level reached last week which is 1.10400 to test it.
If it breaks higher, the target is to reach the height at the end of last July which is around 1.11400.
But on the other hand, if the price plummets, the 1.09000 zone will be the initial support to be tested and will give an important signal.
If the price breaks through the zone, a lower drop will expect the price to go towards 1.08000 to show a more clear bearish movement.
