Disappointing investors, the US dollar in Wednesday's trading was seen as failing to maintain its strengthening momentum.
Analysts are of the view that the focus on U.S. inflation began to fade after published data matched forecasts to rise.
Although US producer price index data was published with rising figures in the New York session yesterday, the movement of the US dollar was limited by the decline in US bond yields which fell from previous highs.
Most of the other major currencies in the market took the opportunity to rebound after receiving pressure by the previous strengthening US dollar.
On the price chart of the EUR/USD pair, it can be observed that the price rebounded after flattening above the support level of 1.0800.
A gain of around 80 pips was exhibited in yesterday’s New York session, however investors will be wary of Euro trading today ahead of the European Central Bank (ECB) policy meeting.
The rally is seen entering the resistance zone at 1.0900 for trading that continues into the Asian session this morning (Thursday).
Investors are evaluating early indications for a reversal of the bullish trend on the EUR/USD chart after the price moved above the Moving Average 50 (MA50) support level on the 1 -hour time frame.
If the price continues to rise beyond the 1.0900 zone, the next resistance target to test the price is at the 1.1000 level.
The higher rise is seen to lead to the resistance zone at the height of 1.12000 which was the focus of trading at the end of March.
However, if the increase is just a correction, the decline is likely to resume and the 1.0800 support zone will continue to be tested.
If the price manages to break the support, the lower decline to the latest lows is expected to reach the level around 1.07000.
