After a flat move on Tuesday, the US dollar showed clear consolidation on Wednesday to resume the opening pattern at the beginning of the week.
In the New York session yesterday, the ADP employment data and the US economic growth report for the second quarter came with encouraging readings, thus providing support to the current performance of the US dollar.
The consolidation continued in early morning trading with the focus shifting to the latest FOMC meeting results which left interest rates unchanged.
Federal Reserve (Fed) Chairman Jerome Powell maintained a cautious tone by stating that the US economy is still strong, but announced that a decision has not yet been made for the September meeting.
If we look at the EUR/USD currency pair chart, the price slid down rapidly, penetrating the 1.15000 level, recording a daily decrease of around 170 pips.
Continuing to decline further after the FOMC meeting ended, the price reached the 1.14000 level at the close of the New York session.
Investors will be watching PCE price index data in the New York session tonight before price action will be driven by the NFP jobs report at the end of the week.
A slow rebound in prices was seen in the Asian session this morning (Thursday) but it is expected that the bearish pattern will still be displayed.
If the decline continues, prices that break through the 1.14000 level will then target a new 9-week low towards 1.13000.
For the bullish pattern if it occurs, prices are seen to test the resistance at the 1.15000 level before a higher increase will trigger an early signal for a trend change.
More bullish price action will be displayed after breaking through that level with the expectation that the price increase will then head towards 1.16000.
