The initial strengthening of the US dollar in the Asian session yesterday at the market opening this week failed to be sustained after the currency rebounded again in the European session.
The rebounding stock market is seen to restore market risky sentiment and has made the US dollar trade weak again.
Investors are also wary ahead of inflation data to be published this week which will be the focus of the Federal Reserve (Fed) to determine monetary policy.
The Euro moved positive earlier in the week after European retail sales data published rose yesterday with the next focus to be directed on German and European zone economic sentiment survey data today.
A good data reading will boost Euro trading while the US dollar is still moving weak in the market.
On the price chart of the EUR/USD pair, the price decline to the level around 1.18700 in the Asian session yesterday then has risen again in the European session above the level of 1.19000 before flattening in the New York session at the high of 1.19200.
The level has yet to surpass last week's high and the price is seen declining again in the Asian session this morning to the level of 1.19000.
The surrounding Moving Average 50 (MA50) support level is also being tested and investors are waiting to see if the price will rebound or fall lower?
If the price manages to rebound, the latest high is expected this week to likely be around 1.19600 before heading to the 1.20000 focus level.
On the other hand, if the price plunges lower, the RBS (resistance become support) zone of 1.18000 is seen to await the decline made by the price.
