The US dollar failed to extend its strengthening in trading yesterday Thursday following the reaction to the latest US economic data report published.
In the New York session yesterday, US retail sales data for December recorded a lower figure than expected.
This is seen to affect the momentum of the previous strengthening of the US dollar when inflation data recorded an increase, giving new guidance to the Federal Reserve (Fed).
If you look at the price movement on the EUR/USD currency pair chart, the price has leveled off since the Asian session yesterday Thursday below the 1.03000 zone before decreasing slightly towards the opening of the New York session to around 1.02600.
However, after the retail sales data was published, the price has rebounded again as the US dollar has experienced a depreciation in value.
The price has returned to showing an increase but struggled to surpass the 1.03000 zone which serves as a resistance for the price.
The price movement remained flat around the zone continuing trading at the opening of the Asian session this Friday morning.
If the price increase continues, the price that is rising from 1.03000 will return to the height reached last Wednesday around 1.03500.
For a higher increase, the price will also head towards the focus level at 1.04000.
On the other hand, if the price plunges from the 1.03000 zone, the price decline is seen to return to targeting the 1.02000 support zone that was reached at the beginning of the week.
Breaking this important support will push the price to record the latest 3-year low with the target shifting to 1.01000.
