There have been no significant changes in the financial markets since the beginning of the week with price movements on the major charts remaining slow and flat.
The US dollar is still deadlocked to continue the strengthening that erupted at the end of trading last week when the US NFP jobs report was published.
The gloomy movement of the US dollar is seen to be driven by investors who are vigilant awaiting the results of the US inflation report this week.
European currencies also lost momentum this week after successfully posting a convincing performance last week supported by meeting results by hawkish central banks.
However, the Euro was under a bit of pressure this week following a statement by European central banker (ECB) Francois Villeroy who said the market was likely to overreact to ECB President Christine Lagarde's statement last week.
In fact, Lagarde himself also stated that there is no need for massive policy tightening actions. This again eased speculation for the expectation of a strengthening Euro in the near term.
Thus on the price chart the EUR/USD pair began to show a bearish pattern again after reaching the high of 1.14800 last week.
The decline has been seen back to the 1.14000 level for the price to test the support zone as of Tuesday’s trading yesterday.
Prices hovering above that level are still moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame signaling the price movement is still bearish.
A decline could occur if the US dollar manages to strengthen again to push the price through the 1.14000 support and hit the latest low this week.
The zone around 1.12700 is seen as an important zone that the price will target on the continued decline before reaching the level around 1.12000 or lower at the support zone 1.11300.
On the other hand, for the expectation of an upward movement, if the price manages to jump higher above 1.14500, the 1.14800 high zone will be tested again this week.
Next, the bulls will target the 1.15300 level to record the latest 13 -week high.
