The US dollar started trading earlier this week with a decline at the opening of the Asian session this morning continuing last week’s bearish pattern.
Last week was the first week of losses for the US dollar in 2 months, as investors began to take advantage of the previous strengthening of the US dollar driven by rising central bank interest rates.
In addition, risky market sentiment is seen slightly heading towards recovery with reports of movement restrictions in China beginning to be eased seen to help global growth resume after this.
Trading for the Euro currency this week is expected to be more turbulent with several important European economic data releases ahead of the European central bank's policy meeting in June.
Examining the price movement on the chart of the EUR/USD currency pair, the price has shown a positive bullish pattern in the last week with the height reached being at the resistance zone of 1.06000.
Reaching that high, the price that made a rise from the 1.04000 level at the beginning of the week completes the weekly rise of 200 pips.
Despite failing to continue higher at the close of last week’s trading, the price still gave a bullish signal with the movement remaining above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the EUR/USD chart.
With the continued depreciation of the US dollar at the opening of trading earlier this week, the price again made a rise heading back to the 1.06000 zone.
The resistance zone will continue to be tested and is expected to be broken for the price to continue to rise higher this week towards the high level around 1.07000.
A rise to that high will mark the latest 4 -week high on the price chart.
Yet if on the other hand the price exhibits a bearish pattern again this week, the initial support level of the price is seen at the 1.05000 zone.
A lower decline after the bearish trend change signal will push the price back to the price focus level earlier last week around 1.04000 before testing the support zone at 1.03500.
