The US dollar currency showed a decline until yesterday's New York session after there was the latest view by members of the Federal Reserve (Fed) regarding monetary policy.
Atlanta Fed President Raphael Bostic stated that the central bank no longer needs to raise interest rates.
The current high interest rates are quite tight and don't see a recession happening even if the economy slows down.
The dovish pitch is seen to be driving the US dollar's decline at the moment while important data on the producer price index (PPI) and consumer price index (CPI) will be in focus.
The Euro managed to record the latest 1-week high against the US dollar by surpassing the level touched last Friday which was 1.06000.
It can be observed that in yesterday's trading on Tuesday, the price dropped first testing the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart before surging through the 1.06000 resistance.
Reaching new highs around 1.06200, the price retreated slightly back to around 1.06000 to close the close of the New York session.
Price movement remained slow in the zone continuing the opening of the Asian session this morning (Wednesday).
If the rising pattern is still successfully maintained today, the price will aim for an increase up to 1.07000.
However, it is likely that some price levels will be in focus for a while before reaching that height like at 1.06600.
As for the situational changes that are at risk, the price is at risk of showing a decline again and finally breaking through the MA50 support.
This will be bearish for the price to continue the decline towards the concentration level at 1.05000.
