The strengthening of the US dollar seems to have continued at the opening of trading earlier this week after the latest reading of the United States (US) economic data accompanied the previous positive employment and inflation figures.
Retail sales data for the month of March was published in the New York session yesterday with an encouraging reading while continuing to inject strength into the US dollar.
However, the price movement on the main charts was seen to be not very significant at the beginning of the week, but still moving on the trend of last week following the cautious market watching the development of the Iran-Israel war.
Examining the chart of the EUR/USD currency pair, the price is seen to continue its decline until the Asian session this morning (Tuesday) after the data published yesterday supported the performance of the US dollar to remain strong.
The trend remains bearish with price movement continuing to be below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart.
The slow decline continues in the Asian session is seen approaching the 1.06000 focus zone for investors to pay attention to the price reaction that will be shown to evaluate further price movements.
If the break-through price is lower, the price drop is expected to continue towards the next target which is around 1.05000.
However, in the event of a rebound after this, the price is likely to rise to the 1.07000 level again.
Crossing the MA50 barrier can give an early signal as a trend reversal and current factors in the market will be observed to support the movement.
