The US dollar failed to give investors a clear direction until the end of trading last week.
United States (US) producer inflation data is published with readings that are not in line with previous consumer inflation.
In the last session last Friday, the producer price index (PPI) data recorded a decrease of -0.1% in December 2023 compared to the forecast of 0.1%. This is in contrast to consumer inflation (CPI) which rose above expectations.
Therefore, the strengthening of the US dollar failed to continue, instead price movements involving US dollar trading were quite mixed at the end of the week.
Observing the price movement on the chart of the EUR/USD currency pair, the price continues to move horizontally below the 1.10000 level.
Not much significant change occurred in the movement pattern during the last week.
The price is seen hovering above the Moving Average 50 (MA50) line on the 1-hour time frame of the chart as investors watch for further directional signals.
If after this price increase tries to show, the resistance at 1.10000 will continue to be tested after the price falls below that for 2 weeks.
After successfully breaking through, then bullish movement is expected to be displayed for the price to increase towards the concentration level at 1.11000.
If the price falls instead, the nearest support zone is seen at around 1.088000 which was tested when the NFP data was published earlier.
A further drop below the zone would expect the decline to continue to reach the 1.08000 level as well.
