Expected to show a recovery early this week, instead the US dollar continued to experience pressure yesterday as it closed trading for June.
This is as the market focus returned to the pressure on the United States (US) economy which is squeezed by several main factors.
Among them is the tax cut and spending bill by President Donald Trump which is currently trying to be passed by Senate Republicans despite realizing the risk of additional national debt to $3 trillion.
The US dollar extended its fall to a fresh 4-year low, pushing the Euro to its highest level since September 2021.
It can be observed that the slow price movement on the EUR/USD currency pair chart hovered in the 1.17000 zone at the close of last week, continuing its rise higher.
The rise in the New York session yesterday which continued in the Asian session this morning (Tuesday) has reached the target level of 1.18000.
The price action remains bullish, above the Moving Average 50 (MA50) support line on the 1-hour chart.
If the price continues to rise higher after breaking through 1.18000, a new high will be recorded with the target shifting to around 1.19000.
However, if the price retreats back down, the 1.17000 zone will return to focus as the price approaches it again.
A decline below that zone will trigger an early sign of a price trend change back down towards the 1.16000 zone.
