There must have been mixed emotions among investors in the New York session yesterday when everyone was focused on the United States (US) inflation data that had been awaited since the beginning of the week.
The consumer price index (CPI) has soared higher than forecast to a level of 3.4% for December, sparking an early strengthening of the US dollar.
The situation that expects the postponement of the policy easing measures by the Federal Reserve (Fed) can be a downward pattern on the EUR/USD currency pair chart.
However, the strengthening of the US dollar was seen to fail to be maintained as the momentum began to fade towards the end of the session.
It can be observed that the price initially rose to the level of 1.10000 before plunging 70 pips to the level of 1.09300.
However, the lower decline failed to continue as the price was seen rebounding to the 1.09800 level.
Price movement was slow in the Asian session, but the price is back above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart, indicating the potential for an increase to occur.
Resistance at 1.10000 needs to be overcome if the price is to continue moving higher and display a bullish trend change.
The target is to reach the next concentration zone at the height of 1.11000.
However, if the US dollar has begun to regain traction and strengthen, the price will be pushed below the MA50 and towards the closest support zone around 1.08800.
A more significant drop in price that continues past the zone will expect the 1.08000 level to be reached.
