Market movements at the beginning of the week are still seen as uncertain as investors are now awaiting the release of the United States (US) consumer price index (CPI) data to measure the latest inflation rate.
The monthly inflation rate is expected to record an increase to 0.5%, but the annual reading that will be more in focus is expected to decline and if it meets the forecast, this will be the seventh consecutive decline.
The US dollar traded weak on Monday yesterday against most other major currencies in the market except the Yen.
If we examine the price movement on the chart of the EUR/USD currency pair, after the price opened trading around last week's closing level, an upward pattern began to be displayed with a daily increase recorded around 70 pips yesterday.
Giving an early signal for a bullish move, the price has successfully crossed the 1.07000 level and also crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart.
If the US dollar continues to be weak, the price increase will continue again with the target being to test the 1.08000 resistance zone that failed to break through last week.
Passing that important zone will show the bullish trend more clearly on the price chart and the target will return to the previous height of the 1.10000 zone.
On the other hand, if the price plunges again if the US CPI data strengthens the US dollar, the price will plunge lower past the current low.
The decline will continue to levels around 1.06000 or 1.05000 and will record the latest 6-week low.
