The USD showed a mixed movement after investors took cautious measures ahead of the release of US inflation data in tonight's New York session.
Most analysts expect that the release of the US inflation data will be published with encouraging readings for the second month in a row.
Producer price index (PPI) data released with rising readings in the New York session yesterday could at all prompt investors to see an increase in tonight’s inflation data as well.
Developments for the European currency, ECB policymaker Klass Knot’s statement hinting that interest rates may not be raised until 2022 is expected to affect the value of the Euro to continue to weaken until the end of the year.
Looking at the price chart of the EUR/USD pair, the price seems to be moving a bit aggressively with the movement driven by some mixed data on Tuesday’s trading session.
The decline has already tested the resistance level of the Moving Average 50 (MA50) as well as the level around 1.15700 before rebounding to almost break the level of 1.16000 in the New York session yesterday.
However, the price movement is still trading above the MA50 resistance level and remains hovering in the SBR (support become resistance) zone of 1.16000 to give a hint of a bullish trend.
If a more aggressive rise is successful in today’s trading session (Wednesday), investors will likely see a surge to test the resistance zone and the highs at 1.17000.
At the same time, investors will also assess the reaction of price movements at that level to issue expectations on whether the price will be able to stay flying or vice versa.
But if the price returns to show a plunge will show a decline to the lowest level for 2021 around 1.15135 before the probability will decline to a lower level.
A significant decline is likely to overcome the lows to enter the support zone of 1.15000 and is expected to give an early signal of a trend change.
