The strengthening of the US dollar that continued until yesterday's New York session is putting more pressure on other major currencies.
The hawkish outlook delivered by Federal Reserve (Fed) officials earlier this week came into focus and again raised expectations for the Fed to maintain a tight monetary policy.
However, investors are alert for a possible change in the situation at the end of the week with the reaction of the data to be published including the US PCE price index.
Examining the price chart of the EUR/USD currency pair, the price has been going down yesterday after the previous day it failed to break through the tested 1.09000 resistance zone.
At the end of the New York session, the price has fallen to the concentration level at 1.08000 with the expectation that an interesting price reaction will be displayed in the RBS (resistance become support) zone.
The decline in prices is seen to have started from the European session again when German inflation data came in with a reading lower than forecast, which also added pressure to the Euro currency.
The price moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart suggests an extension of the bearish price movement.
Slow price movement around 1.08000 resumed trading in the early Asian session this morning (Thursday), with the tendency for declines to continue in subsequent sessions.
For further decline, the target is to go up to the level of 1.07000.
The bearish pattern can be supported by the reaction to the release of US economic growth data in the New York session later.
However, it could be that a different reaction is displayed with a resurgence in prices that could be triggered.
If there is a rebound, the price is likely to cross the MA50 barrier and try to reach back to the previous 1.09000 resistance zone.
