Market sentiment was the main driver of trading at the opening of early June as several issues of focus affected the movement of the US dollar.
The US dollar weakened significantly on Monday as President Donald Trump threatened to double tariffs on aluminum and steel imports from 25% to 50%.
Trump accused China of violating a previously agreed tariff truce agreement, while Beijing described the accusations as baseless and would retaliate against the United States.
The US-China trade war tensions follow the situation over the weekend with the Ukraine-Russia war conflict heating up again.
Thus, the price movement on the EUR/USD currency pair chart has recorded an increase to a new 6-week high after surpassing the previous high.
The price has risen above the 1.14000 resistance zone and reached a new high as of the Asian session this morning (Tuesday) at around 1.14500.
The price has retreated slightly but the market still maintains a tendency for the upward pattern to continue after this.
If the increase continues beyond the 1.14500 level, the new target for a higher price increase is at 1.15000.
However, if the price drops lower, the reaction of the movement at the 1.14000 level and the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart will be observed.
If it drops below that important level, investors are ready to expect a change in the direction of the price trend again after this.
The price decline could reach around the 1.13000 zone which was the focus of the price in previous trading.
