The opening of early trading on Monday yesterday still saw the US dollar presenting a disappointing performance as it continued the downward momentum of last week.
The impact of the United States (US) NFP employment data report last Friday carried over into this week while investors were also wary of trading the US dollar with the focus now shifting to the release of US inflation data on Thursday.
Current market sentiment is also seen to be unfavorable to the US dollar as investors monitor economic developments in China and also the US Congressional elections.
With most of the major currencies in the market taking advantage of the weakness of the US dollar, the Euro currency yesterday looked brilliant showing a strengthening which was also supported by the release of German industrial production data for September which rose above forecasts.
The price chart of the EUR/USD currency pair maintained its bullish pattern at the beginning of the week yesterday with a daily increase of over 100 pips recorded until it crossed the parity level of 1.0000.
Reaching a high of around 1.0030 at the end of the New York session, the price started hovering around that area continuing into the early Asian session this morning (Tuesday).
If the rising pattern continues successfully, the price is seen to head towards the resistance level at 1.01000 which was almost touched 2 weeks ago when the price recorded a 6-week high.
Breaking through that resistance, the price is likely to reach around the 1.02000 level, thus recording a new high for the 12-week trading period.
Meanwhile, if the price fails to continue rising higher but instead makes a drop back below the parity level of 1.0000, the price is seen to first test the 0.99500 level that has been the focus of the past week.
Next, the decline will extend to the 0.99000 zone again before continuing the decline lower to around 0.98000 after a trend change signal.
