The US dollar moved weakly at the opening of the week, but returned to show consolidation with a clearer direction of movement in the New York session yesterday.
Although the United States (US) retail sales data showed a decline in readings for May when published, the US dollar managed to move with a positive performance.
The market situation is still driven by the development of the war conflict between Iran and Israel, which is seen to show no signs of easing for now.
The situation is even more heated when the United States has also intervened in this war situation by moving its warplanes to the Middle East.
Observing the price movement on the EUR/USD currency pair chart, the price first rose at the beginning of the week testing resistance at the 1.16000 zone.
However, after a slow retreat, the price showed a clear decline in the New York session yesterday until it broke through the 1.15000 level.
The bearish signal is clearer when the price moves back below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart, suggesting that the downtrend will continue.
The price slowed at the opening of the Asian session this morning (Wednesday), bouncing slightly to test the 1.15000 level but struggling to break through it.
The expectation is that the price will continue to decline lower to the 1.14000 zone that was the focus of early June trading.
With the ongoing war situation giving the US dollar an advantage, the price risks falling to around 1.13000 or even deeper.
But if the situation changes, there is the potential for the price to recover from the increase above the 1.15000 level.
However, the 1.16000 resistance zone will once again be the main challenge for the price to break through after last week's and early this week's failed attempts.
