Opening the market in early trading this week, investors are still wary of the slow movement in the Asian session while monitoring the focus data throughout the week.
The US dollar last week weakened after the FOMC meeting, but recovered slightly in last Friday's trading, likely driven by profit -taking activity by investors over the weekend.
The development of reports on measures to eliminate tariffs on Chinese goods by the United States (US) is seen to also affect the current movement of the US dollar.
Meanwhile, the Euro currency is seen to be able to take advantage of the opportunity to rise due to the situation of the depreciation of the US dollar.
Still, investors are still wary of the risk of the Euro’s movement in the market following a surprise meeting held by the European central bank (ECB) for aid scheme plans introduced to control the debt crisis of its bloc countries.
Examining the price movement on the chart of the EUR/USD currency pair, last Thursday's surge has reached a high of 1.06000, but the price failed to continue rising with the bearish pattern reappearing last Friday.
The price has slipped below the 1.05000 zone and hovered around that until the end -of -week trading.
Continuing trading earlier this week, a slight early rise was displayed in the Asian session above the 1.05000 zone after the price managed to hold above the Moving Average 50 (MA50) support level on the 1 -hour time frame, being an early signal for a bullish move.
If the rise continues, the price is seen to re -test the resistance level at 1.06000 reached last week.
Higher gains beyond that level will re-target the focus zones in previous weeks such as at 1.07000 or higher at 1.08000.
On the other hand if the price makes a decline below the 1.05000 zone to resume the pattern at the end of last week, the support zone at 1.04000 will be the target to test.
The lower decline will target up to 1.03000 level thus breaking the record lowest price for a period of 20 years.
