Failing to Break Up, EUR/USD Dips Below the $1.0800 Zone


As expected, the price movement was slow at the beginning of the week yesterday, especially involving the US dollar following the market in the United States (US) on holiday in conjunction with the celebration of President's Day.

However, there is a slight positive for the US dollar when its value does not continue to decline after the situation occurred at the end of last week's trade.

Investors are anticipating the minutes of the FOMC meeting which will drive price movements this week although the impact may not be as aggressive as during the day's meeting.

On the chart of the EUR/USD currency pair, the price movement is seen to be flat with the level of 1.08000 which is in the SBR (support become resistance) zone and has not been successfully touched.

The price moves in a range of 20 pips between 1.07850 and 1.07650.

Resuming trading at the beginning of the Asian session this morning (Tuesday), the price is still moving in that range but shows a drop below the Moving Average 50 (MA50) line on the 1-hour time frame on the EUR/USD chart which is an early signal for a bearish movement.

The price drop if it happens after this will try to pass the level reached last Friday around 1.07300 before heading to the important support zone at 1.07000.

However, if the price manages to make an increase again and then pass the SBR 1.08000 zone, this will be a bullish signal for the price to continue climbing higher.

The continued price increase is expected to aim towards the height of 1.09000 to test the concentration zone.