This week the financial market continued to start with a brisk price movement for the market opening on Monday yesterday with a focus on the US dollar currency.
A weak start to trading in the Asian session continued into the European session, but the mood turned more interesting in the New York session as the king of the currency strengthened again.
The two main factors seen supporting the strengthening of the US dollar are the hawkish view by members of the Federal Reserve (Fed) as well as the market's risk sentiment driven by the protest situation in China.
The Euro managed to strengthen initially in the European session yesterday following the European central bank (EBC) being seen as committed to continuing policy tightening despite the risk of recession.
However, the strengthening could not continue after the US dollar went 'rampant' in the next session and changed the direction of the price movement on the main charts.
If you look at the chart of the EUR/USD currency pair on Monday yesterday, the price has managed to jump to record the latest 5-month high level in the European session up to the 1.0500 zone.
However, the momentum failed to be maintained when the US dollar dominated again to push the price down 150 pips in the New York session.
Signaling a bearish move again, the price has fallen below the 1.04000 zone and broken through the Moving Average 50 (MA50) level on the 1-hour time frame on the EUR/USD chart.
After falling to around 1.03300 at the end of the New York session, the price rebounded slightly to continue trading early in the Asian session this Tuesday morning.
A lower decline is expected with the target to break through last week's concentration level at 1.03000 and then 1.02400.
The continued bearish trend movement is seen to reach back to the previous 1.01000 focus zone.
However, if the price reverses to bounce back, the 1.05000 resistance zone tested on yesterday's surge will once again be in focus.
Breaking through that resistance will record a new high with the next target heading to 1.06000.
