The US dollar is seen to continue strengthening on Tuesday's trading yesterday but is still in a slower momentum compared to the movement at the close of last week.
Markets are likely to be cautiously awaiting bigger clues to emerge in the New York session today (Wednesday).
After the United States (US) NFP employment report was examined last Friday, the focus will be on the US inflation data at the beginning of the New York session shortly.
The two data will be evaluated as important indicators for the Federal Reserve (Fed) ahead of the results of the FOMC meeting early Thursday morning.
Surely the speech that will be delivered by Fed Chairman Jerome Powell will have a big impact on the market in addition to inviting drastic price movements, especially the US dollar currency.
Observing the movement on the chart of the EUR/USD currency pair yesterday, the price is still seen to have fallen to the latest 6-week low of 1.07200.
Although the strengthening pressure of the US dollar is not too significant, the Euro currency is indeed traded in a risky mode with the political uncertainty factor that is hitting Europe after last weekend's elections.
The price movement on the EUR/USD chart is still in a bearish trend which is seen to be below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart.
A further drop will be expected to reach the 1.07000 level which is seen as a support zone for the price.
With the big impact after the inflation data and the FOMC meeting, the risk of a further fall in prices to occur is high.
And it is not impossible if the price to move in the opposite direction ie by jumping higher again.
Initial resistance is at the 1.08000 zone for price to be tested first before a move higher signals a trend change.
Next, the price can head back to the 1.08000 resistance zone which was the focus of the price during the last week.
