Starting trading early this week more positively, the US dollar strengthened until the opening of the New York session on Monday yesterday.
Recovering slightly from last week's declining performance, the US dollar strengthened due to expectations for a further increase in the inflation rate in the United States (US) which will be published in the New York session tonight.
Expectations for the US consumer price index (CPI) figure for July to rise to 2.8% could possibly prevent the central bank from implementing an interest rate cut at its meeting next month.
Price action began to show a decline again on the EUR/USD currency pair chart yesterday after the strengthening was shown by the US dollar.
A weak attempt to increase the price only reached the level of 1.16700 before the price plummeted to reach the focus level at 1.16000.
Giving an interesting reaction, the price bounced back and leveled off before ending the New York session trading above the 1.16000 zone.
The price is still moving slowly around that area in the Asian session this morning (Tuesday), but has given an early signal of a trend change when the price is below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the EUR/USD chart.
If there is a significant drop in price beyond the 1.16000 level, the 1.15000 level is seen as the target to be tested.
Continuing the decline lower, the price could reach the previous support zone at 1.14000.
For the opposite situation, the price increase will re-approach the resistance zone tested last week around the 1.17000 height.
Breaking through that resistance will push the price to record a new 2-week high before the target shifts to 1.18000 to be achieved.
