Trading earlier in the week saw the US dollar maintain its strength towards the US inflation data which became the next focus following the release of the US NFP jobs report last week.
Following the strong NFP report, investors will scrutinize the central bank's focus on inflation data for indications of policy tightening measures by implementing reduced bond purchases.
Also of investor concern, the U.S. Senate has passed President Joe Biden’s $ 1.2 trillion infrastructure bill. The US will receive huge investments in the development of their infrastructure such as roads, bridges, airports and ports.
Economic data as well as current sentiment in favor of the US dollar are seen to have pushed the US dollar against the Euro to a 4 -month high.
On the price chart of the EUR/USD pair, the bearish pattern remained displayed until the trading of the New York session on Tuesday yesterday.
Still moving below the Moving Average 50 (MA50) barrier level on the 1 hour time frame for the bearish trend signal, the price has dropped to around the 1.17000 support zone.
Investors will assess the price reaction in this zone after the decline in March trading failed to break it before the price makes a rebound.
The lower price decline that penetrated the zone is expected to lead to the lower support zone around 1.16000 to record the latest low for the year.
However, if the 1.17000 zone once again manages to support the price increase, the price will return to the 1.18000 focus level after passing the MA50 barrier.
The bullish trend movement of the price is again expected to test the resistance zone of 1.19000 after the zone was immune to breach when tested a few days ago last week.
US inflation data that will be published in the New York session tonight will give a signal for the direction of further price movements, especially for the US dollar.
