The rather mixed market movement on Wednesday yesterday made traders start to be careful not to be too aggressive towards the end of the week.
The US dollar was seen strengthening yesterday when it was supported by the increase in the yield of the United States (US) treasury before weakening again in the New York session.
If you look at the price chart of the EUR/USD currency pair, the bullish pattern on Tuesday could not continue to the 1.1000 level when the price was pressed again to recede to around 1.09200.
The Euro currency did not react when the final reading of European inflation was published in the European session yesterday following no change in the previous reading.
After making a decline in the European session, prices bounced back in the New York session before closing the session's close around 1.09500.
The price movement that tested the Moving Average 50 (MA50) level on the 1-hour time frame on the EUR/USD chart since yesterday also made investors wary waiting for a clearer signal for the expected further movement.
If the price plunges lower, the 1.09000 zone is seen to be tested and it will be seen whether it is able to support the price from falling down.
If it breaks through, the price will continue to decline further towards the concentration zone which is at 1.08000.
On the other hand, if the price manages to rise and then break through the 1.10000 level, it will be a positive sign for investors expecting the increase to continue again towards the height reached last week around 1.10700.
And if the price movement remains bullish, the latest high is likely to be recorded with the next target being around 1.12000.
