EUR/USD Expected to Challenge the $1.0900 Resistance Zone Again


As expected by analysts, the recovery of the US dollar last Thursday was only temporary following the resumption of the decline pattern on Friday.

The US dollar is expected to remain weak this week as the market examines key indicators of last week's inflation data which recorded declining numbers.

The minutes of the FOMC meeting will be scrutinized this week which could potentially affect the current movement of the US dollar.

Examining the chart of the EUR/USD currency pair, the price rally that took place last week is seen stuck in the 1.09000 zone after the resistance was tested.

The price retreated slightly and leveled below it heading into the end of the week.

Slow price movement at the opening of the Asian session this morning (Monday) hovering above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart as a signal for the bullish trend to continue.

The upside will be watched for the 1.09000 resistance zone to be tested and broken before the trend continues.

If the 1.09000 zone is broken, the higher rise will continue towards the next target at 1.1000.

On the other hand, if the price retreats further down, price support is seen at 1.08000 which is in the RBS (resistance becomes support) zone.

A lower drop will signal a more clear bearish trend before the price will head back up to around 1.07000.