The US dollar traded down at the opening of the week yesterday but showed renewed strength in the Asian session this morning (Tuesday).
Investors began to take precautions when reports of Donald Trump threatening a 25% tariff on Canadian and Mexican imports surfaced.
Market developments that are increasingly riskier for investors will provide renewed support for the strengthening of the US dollar.
US economic data will be watched in the New York session tonight including consumer confidence and home sales surveys.
Examining the price movement on the EUR/USD currency pair chart, the price made an attempt to break above the 1.05000 level yesterday but failed to hold above it.
The price fell again to close the New York session trading below the 1.05000 level before the decline was displayed early in the Asian session this morning.
The price plunged past the Moving Average 50 (MA50) line on the 1-hour time frame on the EUR/USD chart, which again signals for the price to continue the bearish movement like last week.
The extended decline is seen to test the 1.04000 level before heading to the lowest level reached at the end of last week around 1.03300.
However, if there is a strong rebound in price to surpass the 1.05000 level, there is potential for the price to continue rising higher.
The nearest target is to test the resistance level of last week's focus at 1.06000.
