As analysts expected, market movements at the beginning of the week remained volatile with the US dollar recording mixed gains and losses.
The Euro currency managed to show strengthening in the European session yesterday as the business survey data in Germany by the IFO recorded a figure that rose above forecasts.
However, the Euro failed to maintain the positive momentum when trading continued at the beginning of the New York session again witnessed the strengthening exhibited by the US dollar.
Even so, the US dollar closed the end of the session with gloom again as the depreciation was again assessed by the market.
If we examine the price movement on the chart of the EUR/USD currency pair, the price that initially started trading at the opening of the Asian session around the 1.06000 zone has then made an increase to a level around 1.06570.
However, the price dropped back around 80 pips and finally closed the end of the New York session at around 1.06000 again.
Although it still does not show a clear direction, the price moving below the Moving Average 50 (MA50) barrier in the 1-hour time frame on the EUR/USD chart shows the tendency of the price to continue the decline in addition to the expectation of further strengthening of the US dollar following the hawkish comments of the Federal Reserve (Fed).
If the price falls below 1.06000, the price will go to the concentration zone around 1.05000 with the expectation that there will be a reaction to attract the price around that area.
Breaking lower, the price could possibly reach up to the 1.04000 zone.
On the other hand, if the 1.06000 zone remains capable of resisting the price drop, a rebound could occur for the price to return to the 1.07000 resistance zone tested last week.
Breaking that high will set a new high for the 6-month trading period with the next target being around 1.08000.
