EUR/USD Slips Below 5-Week Low


The movement of the US dollar currency was a bit bland at the opening of the early week yesterday as investors expected it to continue strengthening from last week.

At the close of last week, the US dollar has significantly strengthened driven by the encouraging United States (US) NFP jobs report for May.

Examining the price movement on the EUR/USD currency pair chart yesterday, the price opened 30 pips lower than last week's close around the 1.08000 zone.

Although the US dollar failed to continue strengthening, the Euro was seen to fail to take advantage of the situation due to the uncertainty that hit Europe after the election events put pressure on the currency.

The price decline continued until the level around 1.07330 before the price bounced until the end of the Asian session to around 1.07600.

Horizontal price movements in the vicinity continued trading at the beginning of the Asian session this morning (Tuesday).

Even so, the price movement that remains below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart still gives a bearish signal for the price.

Thus, further declines can be expected to take place to overcome yesterday's levels before recording the latest 6-week lows.

The price's extended downside target is at the 1.07000 concentration zone.

On the other hand, if there is an increase again, the initial resistance that will be tested is the 1.08000 level which is in the SBR (support become resistance) zone.

A move higher beyond the zone and also above the MA50 barrier will signal an early reversal of the trend again.