The dismal performance of the US dollar at the beginning of the week opened the way for the Euro currency to show good performance after successfully registering an encouraging weekly increase last week.
European central bank (ECB) officials reiterated their focus on European zone inflation focusing on the services sector and wage growth.
ECB President Christine Lagarde told European policymakers that wage growth remains buoyant but firms will have to absorb the increase with slightly slower profit margins compared to rising prices.
For the rest, the movement of the Euro will continue to be driven by the performance of the US dollar with speculation regarding the Federal Reserve's (Fed) interest rate cuts remaining in the market.
Examining the price chart of the EUR/USD currency pair, the price displayed a daily increase of around 40 pips yesterday reaching a height of around 1.08600.
Horizontal price movement below that level until the close of the New York session and continued at the opening of the Asian session this morning (Tuesday).
The price that is now above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart gives an indication of bullish movement.
The price increase if successfully continued after this is seen to challenge last week's high level around 1.08880.
Next, the 1.09000 resistance zone is the target to be broken to maintain the bullish movement pattern.
If on the other hand the situation changes, the price could show a retracement below the MA50 support before heading to the concentration zone at 1.08000.
A further decline in the price breaking through the zone would expect the price to retrace to the previous support level of 1.07000.
