Focusing on yesterday's New York session was Federal Reserve (Fed) Chairman Jerome Powell's speech while attending the Riksbank International Symposium in Stockholm which was anticipated by the market.
However, Powell did not touch on monetary policy and investors failed to get the latest guidance for the FOMC meeting which will take place in early February.
Therefore, the effect of price movements saw the US dollar flat throughout Tuesday's trading yesterday, it is possible that investors prefer to reduce risk and be cautious waiting for a clearer signal.
The focus will be on the United States (US) consumer price index data on Thursday tomorrow to assess the latest inflation rate that could influence the central bank's monetary policy decision.
Price movements on the chart of the EUR/USD currency pair have shown a flat price below 1.07500 which is seen as the latest resistance after the rise at the beginning of last week also tested the area.
Despite failing to continue the upward movement, the price that is still above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart shows that the price still tends to continue the bullish trend.
If further gains continue today, the price is seen to head towards the 1.08000 level to test the expected resistance zone.
The increase could reach up to 1.09000 or 1.10000 if more factors add pressure to the US dollar and have the potential to record a new 9-month high.
However, it is not impossible ahead of the release of the US inflation data that is approaching, prices can change direction and make a decrease again.
If it drops back below 1.07000, investors should prepare for a lower drop and assess the indicators for a bearish trend change.
The price drop is seen to return to the previous concentration levels such as the 1.06000 zone and 1.05000 support.
