The horizontal price movement throughout Monday yesterday began to change at the opening of the Asian session this morning (Tuesday).
The US dollar failed to show a clear direction at the beginning of the week as the American market was also closed in conjunction with a public holiday there.
However, the US dollar began to strengthen this morning with analysts seeing the factor driving the situation as risky market sentiment following the increasingly tense turmoil in the Middle East.
Observing the movement on the chart of the EUR/USD currency pair, the horizontal price around 1.09500 yesterday just moved in a range of 20-30 pips only.
The Moving Average 50 (MA50) barrier level on the 1-hour time frame on the chart was also tested, but remained to prevent the price from making gains.
A decline was seen in the Asian session this morning to around 1.09200 which is the lowest level reached last week.
The price drop is expected to go towards the 1.08800 concentration zone with the price reaction around it to be observed.
A lower breakout will push prices lower towards the target at the 1.08000 zone.
If the situation changes and sees a surge in price, a rise above the MA50 barrier will expect the 1.10000 resistance level to be tested again this week.
If finally the resistance is passed, the higher rise will continue towards the target zone at the height of 1.11000.
German economic ZEW survey data will be watched by investors in the European session shortly to see the impact on the movement of the Euro currency.
