The market movement at the beginning of the week yesterday was seen to be quite slow with the US dollar also not continuing the strengthening pattern of last week.
A look at manufacturing data in New York published yesterday also showed a dismal figure of -31.8 compared to forecasts of -3.7, hinting at bleak business health.
Investors are also still awaiting the latest developments regarding the debt ceiling issue in the United States (US) which can change market sentiment at any time and can disrupt the direction of currency trading.
Examining the price chart of the EUR/USD currency pair, the price moved flat on Monday yesterday as the bearish pattern is expected to continue.
However, the price is still moving in a bearish trend where the price remains below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart.
The price that started trading in the early session at the 1.08500 level rose to around 1.08800 and moved slowly in the 30 pips range.
If the rise fails to cross the MA50 barrier and resume the previous downtrend, the 1.08500 level will be crossed before heading towards the 1.08000 target.
If it continues lower and penetrates 1.08000, the price can reach up to the level around 1.07000.
However, if the price shows a surge again, crossing the MA50 barrier will make the price test the 1.09000 zone which will be the next resistance.
If the signal turns bullish for the price, the surge will continue towards the concentration level at 1.10000 again.
Investors will be looking at German economic sentiment data from the ZEW survey and US retail sales data to monitor the movement of both the Euro and the US dollar today.
