US dollar trading was mixed throughout the New York session yesterday as the market digested the latest United States (US) inflation report for September.
US annual inflation eased to 2.4% from 2.5% the previous month but missed the target of falling to 2.3%.
Meanwhile, core inflation rose to 3.3%, surpassing the forecast to remain at 3.2% as in the previous reading.
The US dollar weakened for a while after the data was published but managed to show a rebound later.
It can be observed on the chart of the EUR/USD currency pair yesterday, the price was pushed down to the latest low reaching the 1.09000 zone which has been the target since the beginning of the week.
There was a bounce after the price hit that level to close the New York session close around 1.09300.
The price movement remained slow around that continued trading at the beginning of the Asian session this Friday morning, but was still seen to be below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart, showing a bearish signal.
The price is likely to continue its decline lower and will record a new low if it crosses the 1.09000 zone.
The next target for the continued decline is the 1.08000 zone.
However, investors should be alert if the price moves in the opposite direction during the trading sessions at the end of this week.
Breaking the MA50 barrier would expect price to rise towards the 1.1000 level to test the nearest resistance.
A higher rise will give a clearer signal for a price trend change to occur afterwards.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
The chart displayed above uses the Saracen Market platform. Redeem a $5.00 no deposit bonus if you sign up today CLICK HERE – SIGN UP AND REDEEM NOW
