The positive reading of the US producer data index (PPI) report seems to continue to support the strengthening of the USD to retain the throne of its position as the king of the currency.
It also completely continues to affect rising inflationary pressures which may prompt the Federal Reserve (Fed) to accelerate tapering measures ahead of the FOMC meeting.
Also in focus is on European manufacturing and services (PMI) data as well as the decision to be made by the European Central Bank (ECB) during the policy meeting tomorrow (Thursday).
Looking at the price on the chart of the EUR/USD currency pair is seen showing a rise in the European session yesterday to once again make an attempt to test the SBR zone (support become resistance) 1.13000.
As usual the SBR zone remained blocking the higher surge and continued to pressure the price to tear the support level of 1.12650 which in turn resulted in a plunge of around 70 pips again in the New York session.
However the price jumped slightly at the beginning of the Asian session today (Wednesday) to return to the support level but remained moving below the Moving Average 50 (MA50) resistance level for a bearish trend signal.
As such, it will indirectly encourage investors to expect price movements to continue to decline which will most likely hit the 1.12000 support zone again.
A lower decline is the probability of returning to the lowest level since July 2020 around 1.11900 before it is expected to once again create the latest low.
But on the other hand in a different tone, the SBR 1.13000 zone will continue to remain the focus zone to be achieved after it has often prevented price spikes since last week's trading.
While the highs around 1.13500 are likely to be tested again and of course the resistance zone 1.14000 will be the next target if the price movement continues to show a surge.
