EUR/USD Falls Near $1.0800 Zone, But Bounces Back


Although not very noticeable, the US dollar has shown a re-strengthening in last week's trade recovering from the underperformance from the previous week.

However, at the end of last week's sessions, the US dollar weakened slightly again due to what is believed to be profit-taking activity by market players.

Analysts expect the US dollar to be able to resume its strengthening, but will be influenced by the indicators on the data to be published such as the United States (US) economic growth reading for the first quarter and the PCE price index data.

Assessing the price movement on the chart of the EUR/USD currency pair, the price has shown a decline after failing to reach the 1.09000 resistance zone again.

The decline until the weekend has approached the RBS (resistance become support) zone of 1.08000 before a half-rebound in the final session.

The price has re-crossed the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart which could be an early signal for a change in the price trend.

If the rise successfully continues earlier this week, the expectation is to reach the 1.09000 zone again and test the resistance.

If the last price is successful, the latest high level will be recorded with the continued bullish trend movement of the price, which will expect to target up to the level of 1.1000.

On the other hand, if the price shows a decline again, the RBS 1.08000 zone will be tested and it will be a risk for the price if it passes below that zone.

If it happens, a more clear bearish signal will push the price lower towards around 1.07000.