Having closed last week’s trade with a displayed strengthening, however, the US dollar failed to maintain that positive momentum at the opening of trading earlier this week.
While analysts expect the situation to be only temporary before the US dollar re -strengthens, this has left room for most other major currencies in the market to rise.
Similarly, the Euro managed to rise against the US dollar earlier this week which was also supported by expectations for an interest rate hike by the European central bank at its July meeting.
This is the first interest rate hike in a decade to be implemented by the European Central Bank (ECB) after a signal was also conveyed by President Christine Lagarde herself.
The price on the chart of the EUR/USD currency pair has shown a rebound for trading earlier this week above the 1.0400 level after the price plunge displayed from the 1.0500 zone last week.
After last week’s decline had hit its latest 5 -year low hitting around 1.0350, the price has shown signals for an early reversal of the bullish trend this week after the bulls above 1.0400 also crossed the Moving Average 50 (MA50) barrier in the 1 -hour time frame at EUR/USD chart.
After the 1.0400 level which is seen as a new support level for the price, the price has risen from that level in the New York session yesterday and resumed trading to the Asian session this morning (Tuesday) with an increase at a slower pace.
A higher rise is expected to test the SBR (support become resistance) zone at 1.05000 again after the price plunged below the zone last week.
For a higher rise that continues beyond the 1.0500 zone will push the expectation for a clearer bullish trend movement to head to the resistance zone around 1.0600.
But if the price resumes the decline like last week, the latest low around 1.0350 will try to be overcome to continue to record the latest lows again.
The target for further decline is towards the focus zone around 1.0300 which is expected to be the latest support for the price.
Investors will focus on the release of US retail sales data in the New York session that will influence the current price movement.
