Market sentiment at the beginning of the week was still being assessed risky with concerns over the worsening war crisis between Russia and Ukraine.
With Russia's increasingly violent attacks, the world's major economies are also stepping up measures to increase sanctions on Russia.
The European Union (EU) and the UK are seen among the most vocal in supporting Ukraine with substantial funding contributions for health supplies as well as military support for Ukraine in the face of Russian aggression.
But there are reports that Russia is ready to negotiate and there are even reports that Russian President Vladimir Putin will hold talks with Ukrainian President Volodymyr Zelenskyy in Belarus.
Financial markets continued to be hit by uncertainty with the start of the market earlier this week showing a gap in price opening (gap) on the main charts due to the risk of war over the weekend.
On the price chart of the EUR/USD pair, the price opened lower on Monday morning’s Asian session around 1.11350 with a gap of over 100 pips compared to last week’s close.
In last Thursday's trading, the price has plummeted significantly following the escalating war crisis to hit the latest low of almost 2 years around 1.11100.
However, the price rebounded in Friday's trade and closed around 1.12700, which is likely to see profit-taking activity by investors.
With the price movement seen still displaying a bearish pattern, it is likely that the price will resume the decline earlier this week beyond the level reached last week.
The lower downside target is towards the support zone at 1.10000 and continues to record the latest lows again.
On the other hand, investors remain vigilant in case the changing market situation sees a rebound in prices on the chart.
A rise above the 1.12000 level will once again test the resistance at the 1.12700 zone before the expectation for a higher rise is towards the SBR (support become resistance) zone of 1.14000 again.
