The absence of important economic data that was in focus at the beginning of the week yesterday has made it difficult for investors to assess the clear direction of market movements.
The US dollar is seen to have failed to continue its strengthening pattern in the past week when it experienced a decline especially in the New York session yesterday.
But analysts still place expectations on the strengthening of the US dollar with the potential that still exists based on the current factors that are supporting it.
Examining the chart of the EUR/USD currency pair, the price that landed at the level of 1.05000 last Thursday displayed a horizontal movement at the end of the week until it continued into the beginning of the week yesterday.
At the end of the New York session, the price made a rise near the resistance level at 1.06000 before leveling off around that continuing the opening of the Asian session this morning (Tuesday).
However, there is an early signal for a change in trend when the price starts to move above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart.
If the price increase continues past the 1.06000 level, the price is expected to be driven higher to the previous concentration level such as at 1.07000 or 1.08000.
However, if the increase is not successful, the price risks falling again to return to the support of 1.05000.
The continued strengthening of the US dollar could push the price down to the latest low again towards the next focus target around 1.04000.
