Expectations for further strengthening of the US dollar fell short as the market changed course after reacting to the latest statement by Federal Reserve (Fed) Chairman Jerome Powell.
Unlike last Tuesday's speech, the second day of yesterday's testimony saw a change in the tone of Powell's statement, which stated that the central bank is getting closer to cutting interest rates, but needs to see inflation drop to a lower level first.
This has had a re-depreciation effect on the US dollar in anticipation of the Fed's tendency to switch to policy easing.
Therefore, the latest United States (US) inflation data that will be published in the New York session tonight will be the main indicator of the market.
Examining the chart of the EUR/USD currency pair, the price showing a decline from the beginning of the week is seen getting closer to the 1.08000 level but did not manage to touch it.
On the other hand, a change in direction saw a slow rise yesterday but still did not break the high level of the beginning of the week at 1.08400.
The price movement that started to be above the Moving Average 50 (MA50) line on the 1-hour time frame on the EUR/USD chart gives an early signal for the bullish movement to continue again.
The slow movement in the Asian session this morning is expected to continue into the European session before the market is more lively in the New York session with the release of inflation data.
If the price continues to rise, the price surge will pass the high of the beginning of the week before moving on to the concentration zone at 1.09000 to record the latest high level.
On the other hand, if the price plunges again, the 1.08000 zone becomes the closest level to be tested before a further decline will signal the risk of a further fall for the price.
