The US dollar was still moving weak at the market opening earlier this week with banks in the United States (US) closed in conjunction with Memorial Day.
Putting pressure on the king of the currency, market sentiment was restored with reports of developments in China after Shanghai announced movement restrictions would begin to be eased this week.
Still, the US dollar was seen displaying a strengthening early in the Asian session this morning (Tuesday) to ease losses earlier in the week.
Developments in Europe, European Union (EU) representatives are still discussing a package of sanctions against Russia with the market expecting the sanctions will not include oil imports from pipelines, only oil tanker sanctions.
The still -protracted talks have seen little add to the burden on the Euro currency which has managed to maintain a better performance against the US dollar for the past few weeks injected by rate hike signals by the European central bank earlier.
On the price chart of the EUR/USD pair, the price managed to display a bullish pattern in the early trading of yesterday's week.
Although the upward momentum was not so significant, the price managed to overcome last week's highs heading to the resistance zone of 1.08000.
A slight decline was seen in the resumed trading at the beginning of the Asian session this morning (Tuesday), however the price was still supported at the Moving Average 50 (MA50) support level on the 1 -hour time frame.
If the price plunges past the support level, an early signal for a bearish trend change will see the price make a decline testing the support level at 1.07000.
The continued lower decline will test the RBS (resistance become support) zone at 1.06000.
However, if the price manages to continue rising higher beyond the 1.08000 zone, the latest 5 -week high will be recorded with the next target being towards the 1.09000 zone.
