Volatile market sentiment continued further in trading this week with concerns still directed at the risks of inflation and the recession.
The US dollar slightly displayed an increase at the early opening of the Asian session this morning (Monday) which could trigger expectations for risk-off market sentiment, but it is still too early to assess market movements earlier in the week.
Meanwhile, the Euro is not expected to strengthen while investors await the European central bank meeting for a few more weeks.
However, a speech by European Central Bank (ECB) President Christine Lagarde at a forum event in Portugal with other central bank governors, will be monitored and can provide clues to monetary policy decisions.
The price movement on the chart of the EUR/USD pair still saw the price move in the ‘sideway’ zone of 100 pips of the price with the support level of 1.05000 and resistance at 1.06000.
In last Friday's trading, the price showed an increase but failed to overcome the price drop of the previous day.
The re -crossing of the Moving Average 50 (MA50) barrier level on the 1 -hour time frame in the last trading session of last week gave an early signal for a bullish movement of the price to be witnessed this week.
The price increase if continued this week manages to break the resistance of 1.06000, overcoming last week’s high will push the price towards the next focus levels such as 1.07000 or higher at the resistance zone of 1.08000.
On the other hand, if the price makes a decline, the price support level at 1.05000 will be tested before the price continues to decline lower.
The target for further decline will head to the key support zone at 1.04000 and the price will record a 20 -year low if the price falls lower than that zone.
