The US dollar is seen to maintain its strengthening momentum at the beginning of this week after initial signals were displayed at the close of trade at the end of last week.
Giving support to the strengthening of the US dollar, market sentiment is again assessed as risky (risk-off) following the release of Chinese economic data in the Asian session yesterday, which declined compared to expectations for an increase.
Thus, the situation that gives an advantage to safe-haven currencies including the US dollar has again increased the pressure on other major currencies in the market.
The euro was among those affected by the strengthening of the US dollar, in addition to cautious investors watching the development of the Iran nuclear deal that the European Union (EU) wants to reinstate amid the protracted energy crisis in Europe.
The price movement on the chart of the EUR/USD currency pair has shown a daily decrease of more than 100 pips at the beginning of the week yesterday due to the strengthening of the US dollar.
The price has broken past the initial support level at 1.02400 up to the support level of 1.0600 before the price flattened around that at the end of the New York session continuing into the Asian session this morning (Tuesday).
A lower decline will be expected with the price movement below the Moving Average 50 (MA50) barrier which gives an indication of a bearish trend for the price.
The price that continues to decline lower is seen to test the concentration level at 1.01000 to record the latest low over the last week.
For a lower drop to continue the bearish trend movement, the support zone at 1.0000 is seen to be the main focus until the price is tested.
On the other hand, if it succeeds in showing a rebound, the initial resistance seen to be tested is at 1.02400.
A continued rise above that resistance and beyond the MA50 barrier level will trigger early expectations of a price trend change.
Hagra will head towards the 1.03000 level in a continuing uptrend before the high level reached last week will be challenged again for the latest high level record.
