With the slow movement of the market following the public holiday in the United States (US), analysts warned investors of the gloomy movement of the US dollar at the beginning of the week which has the potential to move more aggressively again towards the weekend.
The next focus for the movement of the US dollar will be on the release of US services sector survey data and minutes of the FOMC meeting on Wednesday, before the main focus is on the US NFP jobs data report on Friday.
The depreciating situation of the US dollar as usual will leave room for most other major currencies in the market to rebound.
But the Euro yesterday was seen as failing to capitalize on the opportunity following limited price increases.
Although the European central bank (ECB) is expected to raise interest rates at the latest policy meeting, the Euro is still overshadowed by the risk of a European economic downturn with concerns across industries in Germany could be paralyzed by natural gas cuts from Moscow.
Examining the price movement on the EUR/USD chart, the price was seen to remain hovering above the 1.04000 zone after the market saw a rebound from below the zone in last weekend's trading.
Early signals for a higher rise were stunted when the bullish price in the European session yesterday passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame, but the price fell back below that level in New York session trading.
Flattening and closing the trade around 1.04200, the price resumed trading in the Asian session this morning (Tuesday) for a slight rise testing the MA50 barrier again.
If it still fails to break the barrier, the bearish signal will push the bearish expectation to retest the 1.04000 support zone.
Investors are still waiting for the price to break the 1.04000 zone for the latest record price low for a period of 20 years.
However, if the price manages to make a jump today, the resistance that is seen to be tested is at 1.05000 which is in the SBR zone (support become resistance).
The higher rise after the bullish trend change signal is expected to lead up to the previous resistance level at 1.06000.
