EUR/USD Lost Direction, Will Prices Go Up Or Fall?

<p>&nbsp;The US dollar failed to give investors a clear direction until the end of trading last week.</p><p><br /></p><p>United States (US) producer inflation data is published with readings that are not in line with previous consumer inflation.</p><p><br /></p><p>In the last session last Friday, the producer price index (PPI) data recorded a decrease of -0.1% in December 2023 compared to the forecast of 0.1%. This is in contrast to consumer inflation (CPI) which rose above expectations.</p><p><br /></p><p>Therefore, the strengthening of the US dollar failed to continue, instead price movements involving US dollar trading were quite mixed at the end of the week.</p><p><br /></p><p>Observing the price movement on the chart of the EUR/USD currency pair, the price continues to move horizontally below the 1.10000 level.</p><p><br /></p><p>Not much significant change occurred in the movement pattern during the last week.</p><p><br /></p><p>The price is seen hovering above the Moving Average 50 (MA50) line on the 1-hour time frame of the chart as investors watch for further directional signals.</p><p><br /></p><p><br /></p><p>If after this price increase tries to show, the resistance at 1.10000 will continue to be tested after the price falls below that for 2 weeks.</p><p><br /></p><p>After successfully breaking through, then bullish movement is expected to be displayed for the price to increase towards the concentration level at 1.11000.</p><p><br /></p><p>If the price falls instead, the nearest support zone is seen at around 1.088000 which was tested when the NFP data was published earlier.</p><p><br /></p><p>A further drop below the zone would expect the decline to continue to reach the 1.08000 level as well.</p>