The US dollar did not continue its strengthening on Wednesday trading yesterday after successfully displaying a recovery last Tuesday when the inflation data of the United States (US) was published.
The re-depreciation of the US dollar is seen to occur after the market digested the data while waiting for the next data to be published in the New York session tonight.
Among the focuses are producer inflation data (PPI), retail sales and US unemployment benefit claims data.
The depreciation of the US dollar has given room for other major currencies to rise again including the Euro.
The euro managed to strengthen against the US dollar yesterday despite a dovish view from members of the European central bank (ECB) for preparations to cut interest rates.
If observed on the chart of the EUR/USD currency pair, the price movement pattern has changed again after the decline displayed from the beginning of the week.
After testing the 1.09000 zone, the price has returned to make an increase and at the end of the New York session the price has reached the height of 1.09600.
The slow movement around that continued trading in the Asian session this morning (Thursday) with the expectation that the increase will continue after the bullish signal of the price being above the Moving Average 50 (MA50) support line on the 1-hour time frame of the EUR/USD chart.
For a higher move, the price is expected to reach the 1.10000 level after surpassing last week's level.
This would be a 9-week price high after the 1.10000 level was last tested in January.
However, if the price dips back below the MA50 support line, the downside is expected to test the 1.09000 focus zone again.
If it breaks lower it will be a more clear bearish signal for the price to decline until the next concentration level at 1.08000.
