As expected, the market at the opening of the beginning of the week has not yet shown a clear direction of movement with the trade of the main currency US dollar still mixed.
The US dollar was seen to weaken in the European trading session but strengthened again in the New York session.
For the bigger picture, the price movement is actually still in the flat zone as investors remain cautious awaiting the results of the meeting of the main central banks this week.
The Federal Reserve (Fed) is expected to raise interest rates more slowly to only 25 basis points for the first meeting of 2023 while the European Central Bank (ECB) and Bank of England (BOE) are predicted to increase interest rates by 50 basis points.
German economic growth data published in the European session yesterday which showed signs of contraction failed to support further strengthening of the Euro and fell again in the New York session.
The price chart of the EUR/USD currency pair showed an early surge in yesterday's European session testing the 1.09000 resistance zone.
However, the rise failed to continue as the price pulled back down again and moved back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart for a bearish signal again.
The price dropped to around 1.08400 which is now seen as the current support level for the price and the slow price around that continues to the beginning of the opening of the Asian session today (Tuesday).
The decline could likely continue lower to head towards the 1.08000 focus zone.
The RBS (resistance become support) zone will be tested before signaling further price movement whether a lower decline will continue or a rebound will occur.
As for expectations for price increases, the 1.09000 resistance zone is seen to be still immune to being breached after being tested since last week's trading.
If successful, the price will continue to rise towards the next target at 1.10000 to record the latest 9-month high.
