Excellent on Thursday's trading yesterday, the US dollar managed to neutralize the losses suffered on the previous Wednesday when it fell with the reading of consumer inflation (CPI) of the United States (US).
However, the sentiment of the hawkish FOMC meeting has managed to support the recovery of the US dollar yesterday.
The US dollar continued to strengthen in the New York session yesterday despite US producer inflation (PPI) data being published with a declining reading for May.
It can be observed on the chart of the EUR/USD currency pair, a downward pattern was displayed again yesterday after last Wednesday the price surged to a height of 1.08600.
The decline below the 1.08000 zone has again continued beyond the Moving Average 50 (MA50) line on the 1-hour time frame on the chart, signaling bearish price movement.
The price reached 1.07330 in the New York session before slowly flattening around that until resuming trading in the early Asian session this morning (Friday).
With the momentum of yesterday's dive, the price tends to continue this lower price drop with the target to reach the 1.07000 support zone.
Hitting the zone will also record the latest low for the price for the 6-week trading period.
However, if the price increases on the contrary, the MA50 barrier will be tested before the price approaches the 1.08000 concentration zone again.
After successfully continuing to move higher, last Wednesday's high of 1.08600 will try to be overcome before the price heads to last week's focus resistance zone at 1.09000.
