The US dollar was slightly stronger at the market opening earlier this week in the Asian session after displaying a dismal performance over the past week.
As a safe-haven currency, the US dollar began to strengthen following reports earlier in the week on the implementation of sanctions measures in Shanghai due to the effects of coronavirus outbreaks.
Thus, the movement of other major currencies in the market was again limited by the initial strengthening of the US dollar in the Asian session. However, will the situation continue until the next sessions?
On the price chart of the EUR/USD pair, the price moved back below the 1.1000 level again at the close of last week.
Moving back below the Moving Average 50 (MA50) barrier level on the 1 hour time frame signals for a bearish trend change.
The decline took place at the beginning of the Asian session this morning to a level around 1.0950 as of 11 a.m. local time, having surpassed last week’s lows.
A further decline in the price will be expected towards the level around 1.0900 for movement on a clearer bearish trend.
Next, the price continuing the lower decline is seen to re -test the key support zone at 1.08000.
On the other hand if there is a rebound in the price above the 1.1000 level and the MA50 barrier, investors evaluate it as an indicator for the price to resume the previous bullish pattern.
The upside is expected to head to the resistance zone at 1.11300 which was tested in the last 2 weeks trading but has yet to be broken.
Overcoming the zone, the continued price increase will target to test the focus level at 1.12000.
Investors will scrutinize some focused economic data throughout the week before attention will be directed to the US NFP jobs report that will influence the movement of the US dollar this weekend.
