The US dollar continued its decline in early week trading with market sentiment seen recovering, again reducing its appeal to the safe-haven currency.
While China has reportedly eased movement restrictions in its country seen to support global economic growth again, US President Joe Biden said he would consider tariff cuts on Chinese imports, which would save the country $ 80 billion in taxes.
While developments in Europe are also stealing the spotlight, European Central Bank (ECB) President Christine Lagarde said the facility program is expected to end earlier in the third quarter of this year and is seen to allow an interest rate hike to be implemented in July.
These factors have given a clear price movement direction for the EUR/USD currency pair chart in earlier trading this week.
The price has continued to rise past last week's high and headed to the 1.07000 focus zone thus recording the latest 4 -week high.
Starting trading at the level of around 1.05550 in the Asian session yesterday, the price has surged past the resistance of 1.06000, which is the high reached last week and recorded a daily gain of around 140 pips yesterday.
The 1.07000 zone became the latest price -tested resistance with prices reaching into that zone at the end of the New York session starting to retreat back on trading that continued in the Asian session this morning (Tuesday).
A higher price increase is expected if it passes 1.07000, the latest price increase will target the 1.08000 level.
However, if the price fails to break the resistance zone of 1.07000 and returns to decline, the initial support of the price is seen at 1.06000 again to form the latest RBS (resistance become support) zone for the price.
A lower decline for a trend change signal will see the price decline heading back to the level around 1.05000.
Be alert ahead of the release of economic sector data in Europe and the US in the coming sessions that will affect price movements.
