Investors began evaluating changes in price movement patterns on the EUR/USD currency pair chart on Tuesday.
However, the focus is on the inflation data of the United States (US) in the New York session yesterday which has influenced the drastic movement of the US dollar.
At the start of the data release with US annual inflation readings falling in line with forecast figures, prices spiked briefly before plunging again afterwards.
The US dollar weakened at the start of the data release, but was seen to strengthen again causing prices to fail to continue rising higher on the EUR/USD chart.
The price tested the 1.08000 concentration level, but pulled back and hovered below that level until the end of the New York session.
Price movement remained slow in the vicinity continuing trading in the Asian session this morning (Wednesday).
Despite failing to break through 1.08000, investors have assessed early signs of a trend change when the price has started to move above the Moving Average 50 (MA50) support level on the 1-hour time frame on the chart.
Next, investors will first look at the US producer inflation data tonight before the main focus will be on the FOMC meeting early Thursday morning which will be the main driver of market movements.
Not to be forgotten also for the Euro currency, the results of the European Central Bank (ECB) policy meeting will be observed on Thursday.
If the movement on the EUR/USD chart is seen to successfully push the price up past the 1.08000 resistance, this will be a bullish indicator with the target being placed back at the 1.10000 resistance zone.
However, if the opposite happens, investors are likely to see the price plunge towards the closest concentration level which is at 1.07000.
A lower breakout will show the bearish movement continues with the target moving to the 1.06000 zone.
