The market's focus is on the release of United States (US) inflation data in the New York session yesterday, which has had an impact on the movement of the US dollar currency.
Slightly ahead of forecasts, the US consumer price index (CPI) rose to 3.7% for August from 3.2% the previous month, beating expectations of 3.6%.
The US dollar showed some strengthening, but not as much as investors had hoped as momentum eased again towards the close of trade at the end of the New York session.
Markets remain expecting continued policy tightening by the Federal Reserve (Fed) at next week's meeting, with interest rates likely to remain at high levels.
Meanwhile, today's focus will be on the results of the European Central Bank (ECB) monetary policy meeting with interest rates expected to be kept at 4.25%.
Some US economic data will also be watched in the New York session later including producer inflation and retail sales.
Examining the price chart of the EUR/USD currency pair, the reaction to the CPI data published yesterday has seen price fluctuations in the range of around 50 pips.
The price dropped briefly to the 1.07100 level before bouncing back up to the 1.07600 level and then slowed down between the zones until it closed the end of the session trading around 1.07300.
Price movements remained slow to resume trading in the Asian session this morning (Thursday) and hovered around the Moving Average 50 (MA50) level on the 1-hour time frame on the EUR/USD chart that investors are watching.
If the US dollar succeeds in continuing its strengthening, a price drop will occur to see the price test the support zone at 1.07000.
If it breaks through lower, the latest low will be recorded with a price target to reach around 1.06000.
However if the price makes a higher move after this, the target is to reach a high at 1.08000 to test the resistance level.
With a more clear bullish signal, the rise can continue until it reaches the 1.09000 zone again, which was the focus of trading at the end of August.
