The significant depreciation of the US dollar in the New York session overnight has opened up space for most of the other major currencies on the market to increase their respective values.
The decline in the latest inflation figures for the United States (US) for June to 3.0% overnight was seen as lower compared to forecasts and also the previous month's levels.
This has further increased the expected rate of interest rate cuts to be implemented by the Federal Reserve (Fed) at the end of this year.
Like the chart of the EUR/USD currency pair, a strong surge in prices has been exhibited as the price recorded its latest high level in a trading period of 5 weeks.
Previously, a pattern of price decline was displayed before the trend change signal was noticed again when the price approached the 1.08000 zone.
The slow rise in prices has finally been accompanied by a significant spike following the reaction to inflation data published last night.
The price reached a new high level to the target of 1.09000 and investors are watching the price reaction in that important zone.
Not yet continuing further increases, the price retreated slightly at the end of the session before slowly continuing around 1.08700 to continue trading in the Asian session this morning (Friday).
With the momentum that was demonstrated last night, prices are likely to continue their rise to higher levels today, but investors will be alert to the risk of erratic price movements in recent sessions.
The target for higher price levels is at 1.10000 as the next increase target.
However, if the price falls again, it is possible that the price will return to almost the 1.08000 zone which is seen as current support.
If it breaks down, a more severe fall should be expected for the price to reach around 1.07000.
