Despite the US inflation data recording an increase, the US dollar remained weak in the market until the end of the week.
In the New York session on Thursday, the US producer price index (PPI) data recorded an increase for January that exceeded expectations, following the consumer inflation reading published the previous day.
Investors will focus on the US retail sales data that will be published in the New York session tonight.
If we examine the price movement on the EUR/USD currency pair chart, the increase continued for 3 consecutive days starting last Tuesday.
The increase started from the 1.03000 level and then surpassed the focus level at 1.04000.
The increase continued in the New York session yesterday until reaching a new high of 1.04600, surpassing last week's trading level.
The price movement remains above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the EUR/USD chart, indicating a bullish signal for the price to move higher.
The expectation for the continued increase is to around 1.05000 as the nearest focus target for the price.
A higher increase that passes this level has the potential to record the price for a new 9-week high.
However, it is not impossible for the price to change direction and make a decrease in the movement in the final sessions of this week.
The price will test the focus zone at 1.04000 and if it is successfully broken, investors should be alert for early signals of bearish movement.
A lower decline in price will push the support level of 1.03000 at the beginning of the week back to be approached again.
