The Euro rose to a 1-month high as the US dollar continued to perform weakly at the opening early this week.
However, the momentum failed to sustain with price movements slowing down until continuing into the New York session yesterday due to the American market being on holiday for Memorial Day.
However, analysts expect pressure to continue on the US dollar with current factors that have been in focus since last week.
Investors are also cautiously watching the development of a trade agreement between the United States (US) and Europe following the postponement of 50% tariffs to July 9.
Examining the EUR/USD currency pair chart, the price is seen to continue the upward trend at the opening of the Asian session on Monday morning to continue the bullish movement of last week.
However, after the price surpassed the 1.14000 level, the price failed to maintain momentum and showed a decline again in the European session.
Then the price leveled off at 1.13800 throughout the New York session yesterday when there was a lack of catalyst to move the price apart from the American market being closed.
The price is still above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart with a slow rise in the Asian session this morning (Tuesday) approaching the 1.14000 level again.
With the expectation that the US dollar will continue to move weakly after this, the price is likely to continue rising higher beyond the 1.14000 zone.
The target will shift to around 1.15000 for a new price high.
However, if the price retreats back down from the 1.14000 zone, the 1.13000 zone that was the focus last week will be approached again.
The price reaction in this important zone needs to be observed which can provide an indication of the direction of further price movement at the close of trading this May.
