The price movement on the chart of the EUR/USD currency pair was seen to be flat at the opening of the early week yesterday, failing to continue the bullish trend of last week.
The US dollar did not continue to decline further and prompted investors to be alert to digest the central bank's fundamental factors as well as market sentiments that influence price movements.
After rekindled expectations for the Federal Reserve (Fed) to slow rate hikes following dismal United States (US) employment and inflation data readings, comments by Fed officials were somewhat mixed.
In addition, the market is also carefully monitoring the development of Covid-19 in China when the latest report shows a surge of over 5,000 cases recorded, twice as high as the weekend.
This is likely to slow China's easing of restrictions and may re-ignite risks to the global economy.
Thus, the US dollar can strengthen again if market sentiment tends towards risk-off.
However, the price on the EUR/USD chart is still seen to be moving in a bullish trend despite being flat yesterday, as the price is above the Moving Average 50 (MA50) support level in the 1-hour time frame.
If the price resumes the rising pattern of last week, surpassing the height reached at the end of the week, the price is seen to test the level of 1.04000 and also record the latest high level.
After that, the price then has the potential to reach the 1.05000 level for a 19-week high.
On the other hand, if the price starts to move below 1.03000, the level of 1.024000 will be tested before the signal of a bearish trend change will be evaluated with a movement below the MA50 level.
The further decline in price that continues will lead to the RBS (resistance becomes support) zone at 1.01000 which has been the focus zone for the past few weeks.
Investors will focus on German economic sentiment data in the European session and US producer price index (PPI) data in the New York session which will affect both the US dollar and the Euro.
