Worse EUR/USD Drops to Lowest Level Since September 2002!

 The early opening of the market in the Asian session on Monday morning surprised early investors who were expecting market movements that usually start slowly.

The US dollar continued to show dominance at the beginning of the week with the strengthening shown, maintaining positive momentum until the end of last week's trading.

Most of the other major currencies had to withstand the pressure from the strengthening of the US dollar including the Euro which also showed a decline during the past week.

Investors will be wary of Euro trading earlier this week with business survey data in Germany to be monitored in the European session before the focus will turn to European Central Bank (ECB) President Christine Lagarde's speech in the New York session for fresh guidance.

Examining the price movement on the chart of the EUR/USD currency pair, the price has displayed a bearish pattern throughout the past week with the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the price chart.

On Friday, the price broke past the 0.98000 support level before heading towards the concentration zone at 0.97000 at the end of the last session of the week.

Continuing on the opening of the market earlier this week, the price has shown a plunge of 150 pips from the 0.97000 level until reaching around 0.95500.

However, after hitting a recent 20-year low, the price is seen rebounding to hover around 0.96600 again.

With the momentum on display, analysts see a tendency for the price to continue its decline to recent lows again this week.

Passing 0.95500 is likely to push the price up to around 0.94000.

However, if there is a price surge again and passes the 0.97000 zone, the price may continue to rise to return to the 0.98000 level which was the focus before the MA50 barrier is about to be tested.

Passing the following obstacles will be a signal for a change in the bullish price trend again to return to the parity zone of 1.0000.

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