The market showed mixed reactions after the announcement of United States President (US) Donald Trump in the New York session yesterday regarding tariffs.
As China remained adamant in fighting the imposed tariffs, Trump announced new additional tariffs on China to 125%.
Following that, Trump ordered a 90-day tariff suspension period following more than 75 countries contacting American officials to negotiate a tariff solution.
The market atmosphere recovered slightly with the US dollar also seen strengthening in the New York session yesterday after moving weak in the previous session.
On the EUR/USD currency pair chart, the price initially rose in the Asian session yesterday, surpassing 1.10000 and then approaching the 1.11000 level in the European session.
However, failing to continue the rise to the resistance zone saw the price pullback in the following session.
At the end of the New York session, the price almost reached the 1.09000 zone before showing a slow rebound to resume trading at the opening of the Asian session this morning (Thursday).
If the price movement remains hovering below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe on the EUR/USD chart, it is highly likely that a bearish price pattern will be exhibited.
A decline in price if it passes the 1.09000 zone will target last week's support zone around 1.08000.
On the other hand, if the price makes an increase above the MA50 barrier and the 1.10000 level, there is still potential for the increase to continue at the end of the week.
The target is to head towards the 1.11000 resistance zone and test it again.
Price movement is expected to be influenced by the release of US inflation data in the New York session tonight.
