The European central bank's monetary baseline and inflation data from the United States (US) will be the main focus today which investors have been waiting for from the start of the week.
The euro and the US dollar are seen moving rather slowly this week as investors are wary of the data decision to be published.
The European Central Bank (ECB) expects to continue to maintain profitability levels but investors are waiting for signs for a bond buying program to see the direction of the Euro movement in the market after this.
Meanwhile, the US dollar was also seen weakening in the New York session overnight following the decline in US treasury yields which had plunged below 1.50%.
On the chart of the EUR/USD currency pair overnight, the price has shown a spike after moving horizontally the previous day.
Daily gains reached levels around 1.22180 before falling back down to the RBS (resistance become support) zone of 1.21800.
Investors are cautious after price declines are seen to have resumed moving below the 50 moving average (MA50) on the 1 hour timeframe which could give an early signal for prices to make lower losses.
However, the price moves flat in the RBS 1.21800-1.21500 zone to be continued in today's trading (Thursday) while waiting for the ECB's message soon.
If the price shows a downside lower, the 1.20900-1.20600 support zone is seen as the main target for the price to test before signaling the next move.
The decline lower may break so that it reaches the support level of 1.20000 if the US dollar manages to dominate over the Euro.
On the other hand, if the US dollar continues to weaken while the decision is in favor of the Euro, the price will jump towards the resistance zone at 1.22500.
Breaking this zone will push the gains higher expected to around 1.23000 levels for the price to hit its latest 5-month high.
