Prices Flatten, EUR/USD 'Sleeping' Moments After Rampage

<p>&nbsp;The US dollar was seen to recover slightly on Wednesday's trade yesterday, not continuing further declines after a significant impact following the reaction to the United States (US) inflation data that was published last Tuesday.</p><p><br /></p><p>Despite recovering from the biggest drop in 1 year, analysts still warn of the risk that the currency king will experience further depreciation.</p><p><br /></p><p>Plus the US producer price index (PPI) data published yesterday also showed the biggest contraction since April 2020.</p><p><br /></p><p>The reading, which is in line with consumer inflation that has also slowed down, reinforces expectations for the Federal Reserve (Fed) to slow down their previous policy tightening.</p><p><br /></p><p>Observing the price movement on the chart of the EUR/USD currency pair, the price which has reached a height of 1.08870 after the spike in the inflation data was published, did not continue the rise to a higher level.</p><p><br /></p><p>On the other hand, the price was flat throughout Wednesday yesterday until trading resumed in the Asian session this morning (Thursday) seeing the price hovering around 1.08400.</p><p><br /></p><p>The signal remains bullish with the price movement still above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart.</p><p><br /></p><p><br /></p><p>The price drop that occurs is seen to test that level and the 1.08000 zone for investors to watch for signals for further price movement.</p><p><br /></p><p>If it breaks lower down, the price decline will continue to reach around 1.07000 again.</p><p><br /></p><p>However, if the price surges back to resume the previous pattern, the latest high level will be recorded again.</p><p><br /></p><p>The closest target for the price is reaching the 1.1000 level after the last time the price traded around that last August.</p>