Towards the end of the week, the US dollar continued to decline on Thursday yesterday after the United States (US) published inflation reading gave a clearer indication that the Federal Reserve (Fed) is heading towards easing its monetary policy.
Adding more pressure to the US dollar when the US producer price index (PPI) data published in the New York session yesterday showed a negative figure, indicating a contraction for March in output inflation.
This situation continues to push the weak movement of the US dollar likely to continue in the following week while the focus will be on retail sales data and the consumer confidence survey that will be published in the New York session shortly.
Optimistic expectations of investors rightly saw the price increase still continuing on the chart of the EUR/USD currency pair on Thursday yesterday where the previous resistance level at 1.10000 was successfully overcome.
The price continued its rise to higher levels reaching 1.10650, recording a new high since April 2022.
The price movement remains above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart, maintaining the expectation of a bullish trend for the price with the next target being at 1.12000.
But be aware of the situation of changes in price direction that usually occur at the close of trading every week.
The price drop can happen again and it looks like the 1.1000 level will be the closest stopover area.
If it breaks lower, the price could reach the 1.09000 zone again but any indication of a trend change will be observed.
