The movement of the US dollar was driven by the publication of the United States (US) consumer inflation data published in the New York session yesterday, which also became an important focus for the Federal Reserve (Fed).
Annual inflation came in lower at 2.9% for July, compared to forecasts to remain at 3.0%.
The market remains expecting the Fed to cut interest rates at its September meeting, which pushed the US dollar lower, but the rate of depreciation was not very aggressive due to an increase in US monthly inflation figures.
Examining the chart of the EUR/USD currency pair, the price is seen to have managed to record a recent high after rising above the resistance level at 1.10000.
The latest high was reached around 1.10470 but the price showed a pullback at the end of the New York session.
Slow price movement continued trading in the Asian session this morning (Thursday) hovering above the 1.10000 zone.
If the surge is successful again, the bullish price trend will continue to overcome the level reached yesterday.
The target for a higher move is aimed at around 1.11000.
However, if the price drops below the 1.10000 zone, it will be an early signal for a change in price trend.
After more clear bearish signals, the price risks falling back to around the previous concentration zone at 1.09000.
