Due to the economic data of the United States (US) published yesterday, the US dollar is seen showing significant strengthening again.
Some data has been published, but the focus is on the US producer inflation (PPI) data which beat forecasts for February and also the biggest increase since August last year.
This has made the US dollar strengthen following expectations that the Federal Reserve (Fed) will not be in a hurry to implement measures to reduce interest rates.
It can be observed the price movement that occurred on the chart of the EUR/USD currency pair yesterday.
After the relatively flat movement of prices displayed from the beginning of the week, the decline was more significant in the New York session yesterday following the reaction to the published data.
The price fell below the 1.09000 zone before slowing and leveling off around 1.08850 at the end of the session until continuing in the Asian session trading this morning (Friday).
The price movement clearly shows a bearish signal that is below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart.
The price trend is expected to go lower with the target being in the 1.08000 zone.
The price will test the RBS (resistance become support) zone before the price reaction in that area will be observed as an indication of further movement.
But if the price manages to bounce back past the 1.09000 zone, the MA50 barrier will try to be broken.
If successful, the bullish pattern of the previous price is likely to continue again with a target towards the height of 1.10000 as the closest resistance to be tested.
