Did EUR/USD Break The $ 1.1900 Barrier At The Beginning Of The Week?


 Starting trading earlier this week, investors were cautious against the US dollar after the king of the currency showed movement against the direction before the closing of the trading curtain last week.

The strengthening situation of the US dollar over the weekend was seen to be driven by profit taking activities by investors after the declining performance of the US dollar throughout the week.

Following the results of the FOMC meeting early Thursday morning, the US dollar has shown a significant depreciation against a basket of other major currencies.

This week will also be turbulent for the US dollar with high-impact data such as the US manufacturing and services sector ISM survey data as well as the US NFP employment data report for July as the main focus events.

On the chart of the EUR/USD currency pair, it can be observed that the price increase was successfully made towards the 1.19000 zone.

However, the price failed to break the resistance zone before closing last weekend’s trade lower around 1.18700.

Investors began to be wary after the price dropped below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame of the movement on the EUR/USD chart as an early signal of a bearish trend.

Investors will evaluate the price reaction in the 1.19000 zone at the beginning of the week to get a clearer signal of the direction of further price movements.

If the price manages to jump above the 1.19000 zone, last week's bullish series will continue with the expectation of the latest target level at the 1.20000 resistance.

On the other hand if the price decline starts to happen again, the 1.18000 level is seen to be a support zone to support the rise again.

If the price continues to plunge lower, the support level of the previous few weeks around 1.17600 will be tested before the continued decline will reach back to the focus support level of 1.17000.