The US dollar did not react negatively even though there was a strong factor that risked its fall, namely the speech from Federal Reserve (Fed) Chairman Jerome Powell at the beginning of the week.
Interest rate cut sentiments are growing stronger in the market after Powell stated that the central bank does not need to wait until inflation reaches its 2% target before starting the policy easing measures.
This situation is seen to affect the depreciation of the US dollar, but the United States (US) retail sales data published yesterday with a positive reading is seen to limit the risk on the currency.
The price movement on the chart of the EUR/USD currency pair which has been flat since the beginning of the week makes investors cautious.
The price is hovering around the important zone of 1.09000 while testing the Moving Average 50 (MA50) line on the 1-hour time frame of the chart which will give an indication of further price direction.
If prices show signs of resuming last week's bullish movement, a further move higher will mark the latest 4-month high above the level reached in early June.
The target for a higher move higher for the price is towards around 1.1000.
However, if the price drops below the MA50 line after this, it will be a signal for a bearish price movement.
The decline in price will be expected to reach back to the previous support level at around 1.08000.
