The US dollar was seen maintaining a strengthening pace at the opening of the week earlier yesterday which ended trading for the month of October.
Analysts are warning of volatile movements for the US dollar ahead of the FOMC meeting and the US NFP jobs data report this week which could make investors take a more cautious approach.
However, the US dollar managed to strengthen on Monday yesterday, continuing the momentum of last week following expectations of the Federal Reserve (Fed) to continue aggressive policy tightening.
The price movement on the chart of the EUR/USD currency pair shows that the downward trend continues with around 90 pips of daily decline recorded yesterday.
Hovering around the 0.99500 level in the Asian session yesterday then saw the price move lower to the expected level of 0.98800 which was also in focus last week.
The price is still moving below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart, indicating that the movement remains bearish.
Based on the displayed pattern, the price is seen as more likely to continue the decline lower.
A lower drop if it passes the 0.98800 level will then be seen to go around 0.98000 before reaching the 0.97000 support level.
Meanwhile, if price rebounds to make gains, the 0.99500 resistance to 1.0000 parity will be the focus to test.
After the signal of a change in the price trend, the increase will continue to return to the resistance at the 1.01000 zone that was almost reached last week.
A break above that resistance will mark a recent 7-week high with a target at 1.03000.
