The inflation data of the United States (US) published in the New York session yesterday had an impact on the movement of the US dollar as expected.
Looking at the report, the annual reading of the consumer price index (CPI) in February increased to 3.2% compared to the forecast to remain at 3.1%.
This has made the US dollar strengthen again after continuing to experience a decline throughout the last week.
It can be observed that the price movement on the chart of the EUR/USD currency pair is increasingly inclined downwards even though it is relatively flat.
A bearish signal is assessed after the price starts to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the chart.
The price drop in the New York session yesterday was seen to reach the 1.09000 zone and as expected the price showed a reaction around that.
A price rebound took place to close around 1.09270 and prices remained slow to resume trading in the early Asian session this morning (Wednesday).
With the current pattern being displayed, the price looks likely to experience a decline with the 1.09000 zone will continue to be tested.
If the price breaks below that zone, the price is expected to extend the decline towards 1.08000.
However, if the decline does not happen and instead the price makes a comeback above the MA50 barrier, the upward movement pattern of last week is likely to continue.
The target is to reach the 1.10000 level which is seen as the nearest resistance for the price to test.
