The strengthening of the US dollar that was displayed when the United States (US) inflation data was published last Tuesday was seen not to continue on Wednesday's trading yesterday.
Market analysts, however, still expect the potential for the US dollar to continue to strengthen again, but it is necessary to pay attention to the latest data that will be published.
Looking at the price action on the EUR/USD currency pair chart yesterday, the price leveled above the 1.07000 support level after last Tuesday's price plunge tested that level.
Failed to break through yesterday, there was a price bounce in the New York session to the level of 1.07300 and the price slowed down around that until it resumed trading at the opening of the Asian session today (Thursday).
Price movements are also seen testing the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart, which will give investors an indication of the direction of further movement.
If the price decline occurs again, the 1.07000 support level will be tested again and will try to be broken to continue the previous decline pattern.
If successfully broken through, the price drop is expected to continue towards the next target around 1.06000 in addition to recording the latest low.
However, if the price shows a surge after passing the MA50 barrier, the 1.08000 resistance will be the focus for the price to test the SBR (support become resistance) zone.
A further move above that zone will give a bullish signal for the price to target the 1.09000 level as well.
