EUR/USD Lost Direction, US CPI Data Will Be Decisive!

<p>&nbsp;The US dollar is trading more volatile as the market gets closer to the release of the United States (US) inflation data report for July.</p><p><br /></p><p>Expectations on the forecast figures for the latest consumer price index (CPI) will change from the previous trend, with the forecast figures increasing from 3.0% to 3.3%.</p><p><br /></p><p>This data will be an important indicator for the Federal Reserve (Fed) in further policy setting when several different views by Fed members are floating in the market.</p><p><br /></p><p><br /></p><p><br /></p><p>On the chart of the EUR/USD currency pair, it can be observed that the price movement was flat during yesterday's New York session showing that the market is on alert.</p><p><br /></p><p>The rise that started from the previous Asian session was seen to fail to cross the 1.10000 level which remains a resistance for the price.</p><p><br /></p><p>Analysts also watch the price movement slowly hovering at the Moving Average 50 (MA50) line on the 1-hour time frame of the EUR/USD chart to get an indication of the direction of further movement.</p><p><br /></p><p><br /></p><p>If the price makes an increase and breaks through the resistance at 1.1000, the price will go to the high level reached last week which is 1.10400 to test it.</p><p><br /></p><p>If it breaks higher, the target is to reach the height at the end of last July which is around 1.11400.</p><p><br /></p><p>But on the other hand, if the price plummets, the 1.09000 zone will be the initial support to be tested and will give an important signal.</p><p><br /></p><p>If the price breaks through the zone, a lower drop will expect the price to go towards 1.08000 to show a more clear bearish movement.</p>