Markets were turbulent in the New York session yesterday following the focus on the release of the US inflation data report which saw the US dollar depreciate significantly.
As the market had expected, US inflation data continued to record an increase. The US annual inflation rate rises to its highest level in 40 years!
As such, the market sees the Federal Reserve (Fed) as increasingly clear to pursue their policy tightening measures as discussed at previous meetings.
While it is expected that the US dollar will strengthen, the opposite is true when investors are likely to release holdings against the US dollar to return to buy positions at a discount for higher returns.
As reported on the previous chart analysis of the EUR/USD currency pair, the bulls finally met the forecast to break the resistance zone of 1.14000 to record the latest 8 -week high!
The rally has reached its latest target level of 1.14500 until the end of the New York session with a daily rise of around 90 pips recorded.
If the price movement remains in a bearish trend, the price will continue to rise higher with the next target expectation is around 1.15000-1.15300.
On the other hand, if the price decline occurs again, the level of 1.14000 will act as price support to form the latest RBS (resistance become support) zone.
The lower decline will re-target previous focus levels such as the 1.12500 or 1.12000 zone on the bearish trend change that occurs.
