EUR/USD Surges to Test Highs Reached Last Week


 Market movements at the beginning of the week are still seen as mixed, making investors remain cautious ahead of the United States (US) NFP employment data report which will be the focus at the end of the week.

But before that, the market will first focus on the monetary policy report by Federal Reserve (Fed) Chairman Jerome Powell before the US Congress on Tuesday and Wednesday.

Analysts expect Powell's testimony to be an important key that will be an indication of the amount of interest rate hikes hereafter.

The US dollar was still trading weak at the start of the week as the Euro rose higher in the New York session yesterday.

The increase in European zone bond yields and hawkish comments by ECB officials were among the factors supporting the rise in the value of the Euro earlier this week.

Examining the price chart of the EUR/USD currency pair at the beginning of the week yesterday, the bullish pattern was successfully displayed with the price once again testing the height reached last week around 1.06900.

However, the situation is repeated, the price increase is seen to still fail to break through the 1.07000 resistance zone.

The price started to retreat a little at the close of the New York session and resumed trading in the Asian session this morning (Tuesday), the price is still hovering slowly below the 1.07000 zone.

The price movement that still remains above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart gives the impression that the increase is likely to continue.

If the resistance of 1.07000 is successfully broken this week, the price will continue to rise towards the next target at the height of 1.08000.

However, if the price still fails to break through 1.07000, the price drop can happen again with the strengthening factor of the US dollar that may be triggered.

The initial level will be tested at 1.06000 before an extended decline can reach the support zone at 1.05000.