The Euro currency traded weak in early week opening trade in the European session yesterday with the release of German-focused European manufacturing and services PMI data, recording dismal readings.
Investors will focus on the outcome of the European Central Bank (ECB) policy meeting this week which will have an impact on the movement of the Euro.
While the US dollar was also traded weakly after Japan intervened again in the market at the close of trading last week, which had the effect of depreciating the US dollar.
Also adding to the pressure on US dollar trading earlier this week, China's economic growth data published in the Asian session yesterday morning reflected expansion in the latest quarter for the world's second largest economy. The US dollar as a safe-haven currency experienced depreciation.
The United States (US) manufacturing and services PMI data in the New York session, with a 'red' reading, added to the pain of the US dollar.
Following that, investors assessed the effect of price movements on the chart of the EUR/USD currency pair yesterday after a jump of around 150 pips was exhibited at the close of trading last week.
In the Asian session yesterday, the price showed a decline from around the 0.99000 zone towards the concentration level of 0.98000.
However, the support level of the Moving Average 50 (MA50) is seen to bounce back the price on the movement in the 1-hour time frame on the EUR/USD chart.
Following the decline of the US dollar in trades connected to the New York session, the price jumped back to test the 0.99000 resistance zone which was also in focus at the beginning of the Asian session this morning (Tuesday).
With the displayed pattern, analysts expect the higher rise to continue further with the target to head towards the 1.0000 parity zone.
But be careful if the US dollar strengthens again and a change in price direction occurs, the decline will again be witnessed towards the concentration level of 0.98000.
Passing the MA50 support level and the 0.98000 zone will signal a change in the bearish trend and expect the price to drop lower towards around 0.97000.
