Market sentiment is seen to be somewhat mixed while the spread of Delta variant Covid-19 infection is still being monitored.
The US dollar closed the week trade weakly and investors will focus on US inflation data to be published on Tuesday.
Strong readings will support the forecast of policy tightening with interest rate hikes likely to accelerate compared to projections in 2023.
The Euro took advantage to rise over the weekend following the depreciation of the US dollar.
On the chart of the EUR/USD pair, the price has shown a rebound from the support zone of 1.18000 towards the level of 1.19000.
A rise above the Moving Average 50 (MA50) support level on the 1 -hour time frame last week has given an early signal for a reversal of the bullish trend.
Investors are waiting to see if the price will be able to break the SBR (support become resistance) zone of 1.19000 this week with the price movement still slow in the Asian session this morning starting trading earlier in the week.
If the price manages to break the zone, the next upside target is to head to the 1.20000 focus resistance zone.
However, if the price declines again, the support zone at 1.18000-1.17800 will be tested again.
If the zone fails to support a rebound, it is likely that a lower decline is expected towards the level around 1.17200 to record the latest 3 -month low.
