After the US dollar weakened due to weak US inflation data, but heading into the weekend trade saw the US dollar's performance begin to recover following the US producer price index data published in the New York session yesterday better than expected.
Investors also began monitoring survey information by Reuters which saw the majority expecting the Federal Reserve (Fed) to announce plans to reduce bond purchases (tapering) at its September meeting.
This factor has to some extent helped to re -support the movement of the US dollar in the market.
Some currencies still survived initial pressure by the US dollar, but most returned to defeat and recorded depreciation against the US dollar.
However, on the price chart of the EUR/USD pair, the Euro seems to be still able to curb the progress of the US dollar by displaying a horizontal movement throughout Thursday's trading.
After the price rebounded from the 1.17000 support zone on Wednesday, the rise failed to continue yesterday but slowly moved above the Moving Average 50 (MA50) support level on the 1 -hour time frame.
The level is expected to help support higher price increases to test the highs recorded earlier in the week around the 1.17700 zone.
The focus zone at 1.18000 will definitely be focused for the price to signal a bullish trend change of the price again if it passes that zone.
The continued rise is seen to return towards the 1.19000 resistance zone which failed to be broken in previous trades.
However, if the price returns to decline, the support zone of 1.17000 will continue to be tested until it fails to contain the lower decline.
Prices that continue to decline are expected to reach the level of around 1.16000, recording the lowest level for the year.
