In conjunction with the President's Day public holiday in the United States (US), market movements at the beginning of the week have been expected to slow down.
The US dollar moved flat until the close of the New York session with the expectation that price movements will return to strength again today (Tuesday).
There is no change to previous expectations, the Federal Reserve (Fed) is still seen to be more inclined to maintain monetary policy tightening, while also being supported by the comments of several policy makers.
In addition to the FOMC meeting minutes, the market is also looking forward to US economic growth data to be published this week as well as manufacturing and service sector data in the New York session later tonight.
If you look at the chart of the EUR/USD currency pair yesterday, the price moved horizontally as expected.
The 1.07000 level is still an obstacle for the price where the price also tested it but failed to pass it.
The price movement also followed throughout the three sessions above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart, giving a slight bullish signal for the price.
If the price manages to surge and break through the 1.07000 resistance, a higher increase will be expected for the price towards the 1.08000 concentration zone.
However, if the price plummets, the support zone at 1.06000 is seen to be tested and likely to be breached.
Continued lower decline could reach up to around 1.05000.
