Assessing the market developments this weekend, the US dollar still failed to dominate the financial markets from the beginning of the week until Wednesday’s trading yesterday.
After the US NFP jobs report came into focus last Friday, this week investors were wary of waiting for the US inflation report to be published in the New York session shortly.
Meanwhile, the Euro failed to take the opportunity to strengthen against the gloomy movement of the US dollar.
The report on the European economic outlook by the European Commission will be monitored at publication in the European session today.
The European inflation rate is expected to fall below the central bank’s target level of 2% while the economic growth rate is forecast to be good in 2023.
On the price chart of the EUR/USD pair, the price is still hovering in the range of 1.14000-1.14500 level until continuing this morning's trading.
The displayed price gains failed to break the 1.14500 resistance before the decline re -emerged in the New York session following pressure exerted by the US dollar supported by rising US treasury yields.
A clearer direction of price movement is awaited by investors after inflation data was published today which is expected to drive the movement of the US dollar.
The decline will test the support level of 1.14000 before a lower drop signals for a possible bearish trend change towards the focus zone around 1.12600 which was the price surge zone last week.
As for the expected price increase, the resistance of 1.14500 will be passed if the US dollar continues to lose its appeal and push the price towards the resistance zone of 1.14800 reached last week.
