Tariff uncertainty is increasingly becoming a cancer on the United States (US) economy which is seen as at risk of heading towards recession.
As a new indicator, US inflation data published in the New York session yesterday showed the reading in March decreased to 2.4% lower than the forecast of 2.5%.
The US dollar weakened significantly in trading yesterday Thursday, more significantly in the New York session until continuing in the Asian session trading this morning (Friday).
Observing the price movement on the EUR/USD currency pair chart, an increase of more than 400 pips was displayed from yesterday Thursday until continuing into the Asian session this Friday morning.
The increase which initially exceeded the 1.10000 level then penetrated last week's resistance zone of 1.11000.
Until the end of the New York session, the price reached the target at the 1.12000 zone retesting the highest zone reached in September 2024.
The momentum did not stop there when strong gains continued to be displayed in the Asian session this morning, almost 200 pips starting from the 1.12000 zone, passing 1.13000 and almost heading towards 1.14000.
However, the price movement began to slow down and retreated to around 1.13000 again to 'rest' for a while after a continuous rally for several sessions.
The price increase is expected to continue towards 1.14000 as the nearest target before the price continues to record the latest 3-year high.
However, if there is a further decline, the price is likely to stop back at the 1.12000 zone or drop lower towards the 1.11000 zone.
The price reaction at these important zones will provide an indication of the direction of further movement.
