The price movement on the EUR/USD currency pair chart at the opening trade of the beginning of the week yesterday showed a pattern of rising prices again although at a slower rate than the plunge in prices exhibited last Friday.
The US dollar was seen to fail to continue its strengthening momentum at the beginning of the week after investors witnessed the strengthening of the currency king when the United States (US) NFP employment data report was published with an encouraging reading.
In addition to the decline in US bond yields, the factor seen to have an impact on the decline of the US dollar at the beginning of the week is the vigilance of market players awaiting the release of US inflation data that will be published on Wednesday with a forecast of a declining inflation reading.
This situation has raised expectations for the Federal Reserve (Fed) to continue aggressive interest rate hikes for the third consecutive meeting.
Meanwhile, the Euro currency is still being monitored by investors with the risk of energy crisis tension between Germany and Russia still lingering.
After the price drop on the EUR/USD chart at the end of last week tested the support level at 1.01600, the price is seen to bounce back from that level and resume the increase of around 60 pips at the beginning of this week to the 1.02200 level.
However, the price increase is seen to be hindered by the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart which still signals a bearish movement for the price.
It is likely that the price drop will continue again today (Tuesday) retesting the 1.01600 support level before the price continues to drop to the 1.01000 level.
The decline continues for a more obvious bearish movement that will push the price to reach the 1.0000 support zone again.
On the other hand, if the price shows a rebound, the initial resistance to be tested is at 1.024000, the price plunge level on the NFP data published last week.
And the continued higher move looks set to challenge the 1.03000 resistance level after several weeks of price still failing to break through it.
