Investors saw the movement of the US dollar remain stable at the market opening earlier this week after successfully closing last weekend’s trading positively.
A more cautious investor view expects that the Federal Reserve (Fed) is likely to exit its previously loose policy despite an increase in cases of Covid-19 infection, likely to support the current movement for the US dollar.
US inflation data as well as retail sales data will be the focus for the US dollar movement signals this week.
Meanwhile, the Euro was seen as failing to get an injection to strengthen after the results of last week's European central bank meeting were judged dovish.
The final reading of the European inflation data to be published on Friday is little changed and could affect the movement of the Euro before the close of this miggu trade.
On the price chart of the EUR/USD pair, the price is seen displaying a bearish pattern from the beginning of the week up to the support level of 1.18000.
Despite a resurgence in weekend trading, the price rebounded towards the 1.1800 level and the slowing price movement at that level continued at the beginning of the Asian session today (Monday).
The price movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame signals for a bearish movement, however the price should drop lower below the 1.18000 support for a clearer direction.
The continued decline will lead to the next support level around 1.17000 to record the latest 2 -week low.
However, the 1.18000 level managed to support the price increase again this week, the 1.19000 resistance zone will return to the focus for price testing.
A higher rise past the resistance on the bullish trend of the price will again target the latest highs towards 1.20000.
