The Euro currency was spared a further fall as the US dollar was seen not to continue its strengthening in Wednesday's trading yesterday after surging last Tuesday when the United States (US) inflation data was published.
Market movements were more flat yesterday with US producer price index data focused on the New York session with slightly better readings than expected, but did not have a significant impact on price movements.
Although the US dollar failed to maintain the momentum of its surge and moved gloomy yesterday, but investors are alert for any surprises that could happen while waiting for the results of the FOMC meeting next week
The Federal Reserve (Fed) is about to continue the aggressive interest rate increase of 75 basis points, but expectations for an increase of up to 100 basis points arose after the US inflation data was examined.
On the price chart of the EUR/USD currency pair, prices were seen moving more flatly yesterday than the drastic plunge exhibited on Tuesday.
The price struggled to make a move past the 1.0000 parity level which became a resistance for the price seeing the price hovering slowly in that zone until the end of the New York session.
Continuing in the Asian session this Thursday morning, the price remained slowly moving around 0.99700 and was still in the horizontal range zone of yesterday's price.
The price movement trend is still bearish where the price is below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart.
If the decline continues today, the support level at 0.99500 will be breached before the price heads to the main support zone at 0.98800.
The zone failed to be broken in last week's trading which managed to bounce back the price after several days of testing.
Meanwhile, for the expectation of a price increase, an increase beyond the parity level of 1.0000 and the MA50 barrier will be assessed as an early signal for a change in price direction again.
The continued increase will lead to the 1.01000 level for the price to test the resistance before the high level recorded at the beginning of the week is likely to be able to be reached again.
