After Solid Surge Last Week, EUR/USD Pulls Back To $1.0700


 Expected to continue the pattern of last week, on the other hand the US dollar showed positive movement in the early trading yesterday.

The market remains wary of the risk of a weakening of the US dollar after the United States (US) NFP jobs report published at the end of last week recorded a declining reading.

Therefore, investors expect the decline of the US dollar to continue this week, but the king of the currency is seen to move quite strongly in the New York session yesterday.

As shown on the chart of the EUR/USD currency pair, prices initially managed to rise slightly in yesterday's European session above the highs of last week's surge.

However, after reaching a high of around 1.07550, the price retreated back down again in the New York session before closing the end of session trade around 1.07200.

Slow price movement resumed trading in the Asian session this morning (Tuesday) with prices seen testing the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart.

The price that is also approaching the 1.07000 zone is expected to give an important reaction to the direction of further price movement.

If the price rebounds higher again, the rise is likely to continue to overcome yesterday's highs.

Next, the continued bullish trend movement will aim to reach the concentration zone at 1.08000.

However, if the price plunges below the 1.07000 zone after crossing the MA50 support level, investors will consider it as an early signal for the bearish price movement to begin.

The decline could reach back to around the previous concentration level at 1.06000.