The US dollar currency remained on the doldrums since the start of the week as investors cautiously awaited the release of United States (US) inflation data, halting the strengthening when the NFP jobs data report was published last Friday.
This inflation data will also be the concern of the Federal Reserve (Fed) for monetary policy setting with the expectation for the Fed to maintain an aggressive interest rate increase of 50 basis points again as an option, compared to previous expectations to slow down the rate increase.
Meanwhile, developments in Europe are getting tense with reports of Russia's sanctions on the Druzhba pipeline over transit payment issues.
The increasingly worrisome energy crisis is seen to continue to pressure the European economy which is indeed dependent on energy supplies from Russia. The situation began to change since the outbreak of the Russia-Ukraine war and the protests that harmed the main economy.
Thus, the US dollar and Euro currencies are among the focus of investors this week.
Judging by the price movement on the EUR/USD chart, the bullish pattern continued on Tuesday's trade yesterday continuing the gains exhibited at the beginning of the week.
However, the rise is seen to be at a slower pace than the sharp price plunge at the end of last week when the NFP data was published.
Yesterday's rise was seen again testing the resistance level of 1.02400 in the European session, before pulling back to close the end of the New York session around 1.02100.
The flat price movement above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart continued at the beginning of the Asian session this morning (Wednesday) still signaling for prices to continue rising.
However, the price increase needs to pass the resistance at 1.024000 before a higher increase is seen to test the resistance at the 1.03000 zone.
On the other hand, if investors see the price decline again, the price support level at 1.01600 will be the focus to be tested this week after the level managed to bounce the price during last Friday's plunge.
For a lower drop, the 1.0100 level will be targeted for the price to test the RBS (resistance become support) zone.
