Price action was mixed in Thursday's trading, but investors are starting to see a clearer direction for the US dollar and Euro with the latest indicators.
The European Central Bank (ECB) met expectations by cutting interest rates by 25 basis points to 3.15% at its latest meeting, paving the way for further easing of their monetary policy.
This is seen to continue to put pressure on the Euro.
Meanwhile, the US dollar received support from the producer inflation (PPI) data reading which rose above expectations for November, in line with the previously published consumer inflation (CPI) reading.
Thus, investors are watching the price action on the EUR/USD currency pair chart which hovered around the important 1.05000 zone in the New York session yesterday.
With a rather volatile movement, the price was finally seen to record a new low reaching 1.04600.
The Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart is seen to be constraining the price increase, signaling for the bearish movement to continue.
The price slowed down around 1.04600 in the Asian session trading this morning (Friday) with further declines expected to continue with the previous session's trading momentum.
The target for a lower decline is towards the 1.04000 zone which has been the focus of previous trading.
However, be wary of the volatility in the last trading sessions at the end of the week which could change direction.
If the price increase occurs, the 1.05000 zone will be tested as the nearest resistance that the price needs to pass.
A higher increase if continued will target 1.05000 which has been the price resistance zone for trading several weeks ago.
