The US dollar remains volatile in the market as market focus is still on the development of Donald Trump's tariffs when the previous 90-day moratorium period was extended to August 1.
The US dollar showed some strength at the close of trading last week, but investors still remain cautious in anticipation of the risks that will materialize.
In addition, President Trump presented a new threat by announcing a 30% tariff on all imported goods from the European Union (EU) and Mexico.
The Euro currency, although not showing drastic movements, fell to a 3-week low.
On the EUR/USD currency pair chart, the price was seen hovering around the 1.17000 zone throughout last week.
Since the beginning of the week, the price hovered above 1.17000 before at the end of the week the price began to decline and moved below 1.17000 which became a new resistance for the price.
In the Asian session this Monday morning, the price opened lower near 1.16600, showing an increase to the 1.17000 level again before losing momentum.
The Moving Average 50 (MA50) resistance line on the 1-hour timeframe on the EUR/USD chart was also tested but failed to pass, indicating that the price will continue the downward trend seen earlier this week.
For expectations of further declines, the price is expected to head towards the focus zone at 1.16000 and it is not impossible to drop lower as the European economy is threatened by new tariffs and pressure the Euro currency.
On the other hand, if the price manages to jump firmly above 1.17000 again, the price change signal will return to targeting the 1.18000 resistance zone.
