Trading on Tuesday yesterday saw the US dollar once again show strengthening after moving flat at the opening of the week.
The market still expects the Federal Reserve's (Fed) tendency to maintain monetary policy tightening will support the strengthening of the US dollar in the near future.
Examining the reading of the data, the manufacturing and service sectors in the United States (US) are published better than in Europe.
Adding support for the king of the currency, geopolitical tensions are seen to give an advantage to the safe-haven currency when a conflict between the US and Russia breaks out.
US Secretary of State Antony Blinken has claimed that China is providing military aid to Russia.
While Moscow responded by suspending the nuclear agreement with the US and continuing to maintain military action against Ukraine.
On the price chart of the EUR/USD currency pair, the bearish pattern was displayed again yesterday albeit at a relatively slow tempo.
There was an attempt by the price to test the 1.07000 resistance level, but still failed to break through it.
The price reached a level around 1.06400 and is below the Moving Average 50 (MA50) barrier on the 1-hour time frame, giving a bearish signal for further movement.
A further decline can be expected today for the price towards the support zone at 1.06000.
If it manages to pass the zone, the price will drop lower with the next target being at the concentration level of 1.05000.
If the price manages to jump and break through the resistance of 1.07000, it will be an early sign for a change in price direction.
The rise could continue to reach the resistance level at 1.08000 which was tested in the previous week's trade.
