Clearly different was the movement of the US dollar at the opening of the week compared to last week's dismal performance.
The US dollar showed significant strengthening in the Asian session until trading resumed in the New York session yesterday after market sentiment was cleared by the successful negotiation agreement between the United States (US) and the European Union (EU).
President Donald Trump and European Commission President Ursula von der Leyen reached an agreement on a trade agreement on Sunday, with import tariffs on European goods set at 15%, halved from Trump's previous threat of 30%.
Although the situation is good for Europe, the Euro failed to show excellent performance when pressured by the significant strengthening of the US dollar.
Examining the movement of the EUR/USD currency pair chart, the price has plunged rapidly from the trading level at the opening of the first session early yesterday around 1.17700.
The price, which made a daily decline of almost 200 pips, penetrated 1.17000 to reach around 1.16000 in the New York session yesterday.
The price movement below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart shows a signal of a trend change this week.
The price slowly continued trading in the Asian session this morning (Tuesday) below the 1.16000 level with expectations that the downward pattern will continue after this.
It is likely that the latest 5-week low will be recorded by the price towards the next target in the 1.15000 zone.
However, if there is a price rebound from the 1.16000 zone, an attempt to increase the price is seen to test the level around 1.17000.
A rise higher than that will signal a change in the bullish trend again for the price which may be influenced by important data readings to be published throughout this week.
