Following a public holiday in the United States (US) with banks also closed yesterday, market movements at the beginning of the week were seen to be slower.
The US dollar is still displaying a gloomy movement after the effects of its depreciation during the FOMC meeting last week, although the Federal Reserve (Fed) is meeting its forecast to raise interest rates more aggressively.
The Euro failed to capitalize on room to strengthen against the US dollar earlier in the week following a hawkish statement by European Central Bank (ECB) President Christine Lagarde who reiterated a 25 basis point interest rate hike at the July meeting, adding that rate hikes would continue. in September to curb high inflation.
However, the ECB, which announced plans for aid schemes to European countries at a surprise meeting last week, made the rise for the Euro more limited.
The price movement on the chart of the EUR/USD currency pair at the beginning of the week was seen flat above the 1.05000 zone after trading at the beginning of the Asian session initially increased above that zone.
Just rising around 40 pips, the price slipped back to the 1.05000 zone in trading at the end of the New York session.
Continuing trading in the Asian session this morning (Tuesday), the price again showed a rebound to give an early signal of a bullish movement where the price is still moving above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the EUR/USD chart.
If the rally manages to continue, the resistance at the 1.06000 zone reached last week will be tested again this week and the price has the potential to go higher if the US dollar remains weak.
A rise above the resistance will record the latest highs towards the target levels in previous weeks trading, towards the 1.07000 level or higher at the 1.08000 resistance.
On the other hand if the price plunges below the 1.05000 zone, the signal for a bearish movement of the price will push the expectation to return towards the 1.04000 level, testing the important support zone.
Several times the price is seen failing to fall lower than the 1.04000 support zone last week, and if the price manages to break it this week, a 20 -year price low will be recorded.
