US Dollar Weak Again, EUR/USD Rises Through $1.0800


There were no significant changes in the market at the opening of the early week yesterday, but the US dollar was seen moving weakly again.

Concerns were somewhat eased by the news of the purchase of Silicon Valley Bank (SVB) by First Citizens Bancshares.

In addition, Deutsche Bank in Germany, which is facing the problem of a surge in credit default swaps (CDS), is reported to have re-increased its shares which fell earlier.

Following the gloomy return of the US dollar at the beginning of the week, the Euro currency took the opportunity to rise albeit at a slow pace and was supported by the release of positive business climate survey data in Germany.

If examined on the price chart of the EUR/USD currency pair, the price has managed to display a rise again in the New York session yesterday towards the level of 1.08000 after moving horizontally in the previous sessions.

Continuing trading in the Asian session this morning (Tuesday), the price is seen to continue to rise and pass the 1.08000 level.

The price movement which has also been back above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart has given an early signal for a bullish movement.

If the US dollar continues to trade weak after this, the rise is seen to return to the high level reached last week beyond the important zone of 1.09000.

Next, the target will be re-directed at the height of 1.1000 for the price to record the latest 8-week high.

On the other hand, if the price resumes the downward pattern that was displayed at the end of last week, the price could drop back below the 1.08000 level and give a bearish indication again.

The drop in price is seen to be heading back to the 1.07000 zone as happened in last Friday's price plunge.

Continuing the decline lower, the price could reach around 1.06000 or even lower at the 1.05000 support zone.

Investors will focus on the release of US consumer confidence data that will be published in the New York session tonight and will affect the movement of the US dollar currency.