The US dollar managed to show moderate strengthening towards the end of last week, but was seen weakening again to continue the opening early this week.
After a recovery driven by the progress of tariff negotiations between the United States (US) and China last week, the US dollar weakened again with the surprise of a Moody's report.
Moody's downgraded the US government's credit rating as concerns about the country's debt are increasing, now reaching $36 trillion.
However, investors will remain vigilant and await new clues at the beginning of this week with expectations of still mixed market movements.
If we examine the price movement on the EUR/USD currency pair chart, the price decline occurred last Friday after leveling off at the 1.12000 zone.
The daily decline of around 90 pips recorded saw the price reach 1.11300 with a bearish price signal moving below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart.
The slow price bounce at the close of the last session seems to have continued at the opening of the Asian session earlier this week, approaching the 1.12000 zone again, with the MA50 resistance line also being tested.
If the price manages to continue rising past the 1.12000 zone, it is likely that last week's high will be challenged near 1.12700.
Next, the 1.13000 zone will be the target for higher increases for the price to retest the zone that was the focus of early May trading.
However, if the 1.12000 zone fails to be broken and the price retreats back down, it is likely that the support zone at 1.11000 will be approached again.
The price reaction at this important zone will be watched to assess the direction of further price movement.
