The US dollar, which was moving weakly at the market opening earlier this week, exhibited an earlier increase in the New York session last night. However, weak performance is still seen as a result of momentum in the disappointing United States (US) employment data report.
For further data this week, investors will pay attention to the US inflation data for April to be published on Wednesday and the US top sales data on Friday.
Although the other major currencies in the market were mostly exposed to shining action following the US dollar depreciation situation, the euro currency is seen as failing to take advantage of the opportunity.
Prices on the EUR / USD currency pair chart moved flat against the resistance zone 1.21800-1.21500 at the start of the market's session this week starting after shrinking lower in the New York session.
Closing trades around the level of 1.21300, prices continue trading in the Asian session Tuesday morning in the vicinity and testing the support level of the Moving Average 50 (MA50) on the frame of the 1 hour period of price movement.
Dropping lower below the MA50 level should signal the price to initiate a bearish trend after failing to clear the 1.21800 resistance zone.
The fall in prices is seen to be underpinned by the RBS (resistance become support) zone at 1.20900-1.20600 before the lower slide resumes heading towards the 1.2000 support level as well.
However, if the US dollar remains weak and pushes its original price higher, the resistance zone 1.21800-1.21500 is expected to be penetrated for the price to record its latest 11-week high level.
For even higher increases, the altitude level at 1,22500 views will be the latest target destination for prices.
