Opening trading at the beginning of the week yesterday, the US dollar maintained its downward momentum after being affected by investors' reaction to the United States (US) NFP employment data report published last Friday.
The market is watching the latest statement issued by the Federal Reserve (Fed) officials regarding the central bank's monetary policy which tends to slow down the policy.
San Francisco Fed President Mary Daly sees the latest rate hike as 25 or 50 basis points as options.
Meanwhile, Atlanta Fed President Raphael Bostic believes interest rates should be raised to 5% or 5.25%.
In addition, added pressure for the US dollar as a safe-haven currency when market sentiment was restored with reports of China's announcement to reopen Hong Kong after being closed 3 years ago.
If you look at the price movement on the EUR/USD currency pair chart, the price shows that the US dollar has fallen to a 7-month low against the Euro.
After the surge in prices last Friday, prices continued to rise on Monday yesterday and managed to break through the 1.07000 resistance zone.
A rally to recent highs reached around 1.07600 in the New York session yesterday before prices retreated slightly at the end of the session.
Slowly continuing the opening of the Asian session this morning (Tuesday), the price leveled at the closing level of the previous session around 1.07300.
With the price movement still remaining above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart, the bullish trend is expected to be maintained for the price towards the latest target at the height of 1.08000.
The increase that continued past 1.08000 could potentially lead to the level of 1.09000 after the last time the price reached it was in April 2022 trading.
However, if the situation changes such as the strengthening of the US dollar again, the price can be pushed lower again below the 1.07000 zone.
A further decline in price will return to around 1.06000 and investors will assess whether there are new indications for a change in the price trend.
Last week's support zone at 1.05000 will be waiting for a lower price drop.
