In line with the predictions of the majority of market players, the US dollar moved weakly at the opening early this week.
If observed, the momentum of strengthening the US dollar was affected and began to show signs of weakening at the end of last week.
President Donald Trump's threats against Federal Reserve (Fed) Chairman Jerome Powell are seen as a threat to the integrity of financial institutions in making decisions without foreign political interference.
Most recently, Trump urged Powell to lower interest rates by 300 basis points in an effort to support the United States (US) economy.
Judging by the movement on the EUR/USD currency pair chart, the price displayed an upward pattern last Thursday, crossing the 1.16000 zone again.
After slowing above the 1.16000 zone at the opening of the Asian session early yesterday, the price then displayed a daily increase of 100 pips to reach the nearest target of 1.17000.
The price reaction was observed testing the resistance zone with the bullish momentum fading again.
Prices eased below the 1.17000 zone at the close of the New York session and remained flat around that area in the Asian session this morning (Tuesday).
With yesterday's upward momentum, prices are expected to continue rising higher but need to first surpass 1.17000.
The target for higher price increases is at 1.18000, the resistance tested in early July.
However, if prices fail to continue rising like yesterday, the decline is expected to approach 1.16000 again.
A decline lower would signal a resumption of the bearish price trend as seen in recent weeks.
