The European session today (Tuesday) will focus on the German economic sentiment of the ZEW survey for investors to assess the reaction to the movement of the Euro currency which was squeezed by the strengthening US dollar earlier in the week.
The euro as an anti-dollar depreciated with risky market sentiment seen to continue to give an advantage over the US dollar as a safe-haven currency in the market.
Tensions between Russia and Ukraine are growing and also involve the intervention of the United States (US) which has yet to show signs of peace.
Thus, investors will expect the US dollar to continue to dominate, especially on the Euro, in addition to comments by St. Louis Fed President James Bullard who expects interest rates to rise to 100 basis points in July.
On the price chart of the EUR/USD pair for the opening of trading earlier in the week yesterday, the price has slipped lower continuing the decline last Friday.
The lowest level reached at the end of the New York session was around 1.12800 before a slight weak increase occurred at the beginning of the Asian session this morning.
The price movement is seen to remain in a bullish trend where the price is moving below the Mvoing Average 50 (MA50) barrier level in the 1 hour time frame since last weekend.
The decline in prices is also seen to have returned to the surge zone as the market reacts to the decision of the European central bank (ECB) policy meeting over the course of the day.
The zone around 1.12600-1.12500 will be tested today if the decline continues and can head to the focus level of 1.12000 or even lower up to the support zone of 1.11300.
On the other hand if the return makes a rebound, passing the MA50 barrier will give an early signal for a change in the price trend again.
The price will head to the level of 1.14000 to test the SBR zone (support become resistance) for investors to assess the price reaction for indications of further movement.
