The US dollar is back in a bearish pattern, especially in yesterday's New York session, reversing its previous movement.
The situation is driven by market sentiment that is recovering as the global tariff war issue has eased slightly.
However, the market remains cautious with attention being focused on the United States (US) inflation report this week.
In the New York session tonight, consumer inflation (CPI) data will be the focus, followed by producer inflation (PPI) on Thursday.
Examining the movement on the EUR/USD currency pair chart, the price changed direction again to rebound yesterday after a flat movement the previous day.
A daily increase of around 80 pips was recorded yesterday from the 1.03000 zone to around 1.03800, which crossed the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart, triggering a trend change signal.
Slow price movement in the Asian session this morning (Wednesday) around 1.03600 with expectations of the upward pattern continuing towards 1.04000 which is the resistance tested last Friday.
If the price manages to break through that resistance, a higher rise is expected to target the next resistance zone at 1.05000.
On the other hand, if the price falls again, the current support zone at 1.03000 will be the closest zone to be tested by the price.
A break lower will push the price to continue its decline lower towards the support zone tested last January which is 1.02000.
