The US dollar's performance continued to decline on Wednesday as its trading value declined with the market now placing high expectations for an interest rate cut by the Federal Reserve (Fed) at the September meeting.
After significantly weakening following the reaction to the US consumer inflation data published on Tuesday, investors are also looking forward to the indicator on producer inflation that will be published in the New York session tonight.
The US dollar's decline continues until the latest session, but the momentum is starting to decrease with investors remaining cautious.
Examining the movement of the EUR/USD currency pair chart, the price has made an increase to exit the 100 pips horizontal range zone before.
The resistance of 1.17000, which was a price barrier last week, has been successfully broken to reach a new high of 1.17300.
However, further increases did not continue with the price also bowing and slowly leveling above 1.17000 until it resumed trading in the Asian session this morning.
The price movement that remains above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart suggests that the bullish trend will continue.
If the price manages to continue its rise, the nearest target will be the 1.18000 resistance zone.
The resistance was tested in June trading before the price began to show a downward trend change.
However, if the price moves below the 1.17000 level and the MA50 line, it will be an early signal for a bearish trend change.
The price risks falling to test the 1.16000 support level before moving lower towards around 1.15000.
