Market movements are expected to be slow at the opening of trading earlier this week with a bank holiday in the United States (US) today.
However, investors have already seen the US dollar continue to shrink at the beginning of the Asian session which continued the movement pattern of last week.
After the NFP employment data, the US dollar continued to decline, driven by the release of US inflation data which also decreased.
It can be seen the price movement on the chart of the EUR/USD currency pair, the price has displayed a bullish movement pattern with the price remaining above the support level of the Moving Average 50 (MA50) on the 1-hour time frame throughout the past week.
After reaching a height of around 1.08600, the price retreated a little at the end of last week's trading and stopped at the 1.08000 level which became the support level during the price formation.
The opening of the market earlier this week in the Asian session continued to see prices continue to rise past the highs reached last week and towards the 1.09000 concentration zone.
The increase exhibited has recorded the latest high level of the price for a period of 9 months, which is the highest since April 2022.
A higher move will be expected if it breaks through the 1.09000 resistance before targeting around 1.10000.
However, if there is a change in price direction again, the price that made the decline is seen to test the support level at 1.08000 again.
If it is broken, investors will be alert as an early signal of a trend change and monitor the factors that can support the strengthening of the US dollar.
An extended decline will return to around 1.07000 or even lower at 1.06000.
