Beginning trading earlier this week as the 2023 market opens still sees slow price movement with most major central banks closed for the new year.
This less active market activity is expected to continue until the end of the week unless there is news that is reported and has an impact on the financial market before the United States (US) NFP jobs report will be in focus.
The US dollar is still trading uncertainly with the Euro showing the worst performance on Monday trading yesterday, but overall the price movement is still seen as flat.
Although the US dollar is volatile, it managed to stay away from 6-month lows against most major currencies after the downward trend exhibited at the end of 2022.
Examining the price chart of the EUR/USD currency pair, the price started trading in the Asian session yesterday around the 1.07000 level after the price successfully closed the 2022 trade at the end of last week around that level.
1.07000 was the previous resistance zone for the price, and the price has also broken lower after initially trading at that height.
The decline in prices that started to move back below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart gave an early signal for the beginning of a bearish trend.
If the decline continues today, the price is seen to return towards around 1.06000 to test the price support zone.
If successfully broken through, the price is expected to head to around 1.05000 to continue the bearish trend that is clearer after successfully breaking out of the horizontal zone.
However, if the price bounces back and manages to break through the 1.07000 resistance, further gains will target the 1.08000 high.
Reaching around that would mark the price's latest high for a 7-month trading period.
