The latest US inflation report was the focus of publication in the New York session yesterday, becoming the focus of the central bank in setting its next monetary policy.
The slow increase in prices to 2.4% for May was lower than the forecast of 2.5%, which was seen as not having much impact on the movement of the US dollar currency yesterday.
On the other hand, the significant movement that occurred in the market was more driven by the development of US-China trade negotiations after 2 days in London.
On a good end, President Donald Trump stated that the negotiations were completed with China with several matters reached an agreement.
However, the market needs to remain vigilant if the situation changes again with the negotiation period extended to August 10.
Examining the price movement on the EUR/USD currency pair chart, the price has managed to record a new 7-week high after an increase that exceeded the previous week's trading.
Driven by the weakening US dollar, prices, which had previously been flat at the 1.14000 zone, rose to test the 1.15000 resistance zone in the New York session after the CPI data was observed.
Resuming trading in the Asian session this morning (Thursday), prices continued to rise above the 1.15000 resistance, but momentum slowed to around 1.15300.
With expectations of higher gains to continue, the price target now shifts focus to 1.16000.
However, if prices fall back below 1.15000, a decline in prices could occur again approaching the previous 1.14000 zone.
After a clearer signal of a bearish trend change, prices risk falling lower to reach around 1.13000.
