As expected, the US dollar traded weak again starting in the European session until continuing into the New York session yesterday.
Additionally, the ISM survey data for manufacturing PMI readings in the United States (US) for March recorded a worse-than-expected reading, the lowest since May 2022.
Therefore, there is no change in the expectations of the majority of the market regarding the monetary policy of the Federal Reserve (Fed) which will further slow down the policy in balancing the pressure from the current factors.
If assessed, the 10-year US treasury yield also showed a significant decrease to around 3.4%, also affecting the further depreciation that occurred in the US dollar.
On the chart of the EUR/USD currency pair, the effect of a price rebound can be observed after the price hovering in the 1.08000 zone managed to bounce up.
The rise that continued until the end of the New York session reached the 1.09000 level before slowing around that continued in the opening trading of the Asian session this morning (Tuesday).
The rise has also crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart, signaling that the rising pattern will continue.
The 1.09000 zone that has been tested for the past 2 weeks will be an important challenge that needs to be broken by the price to further strengthen the bullish movement indicator.
The rise if successful continues will lead to the next target at 1.10000 to record the latest 9-week high.
However, if the situation changes and sees the price make another decline, the support zone at 1.08000 will be tested again.
If the price fails to rebound and instead breaks lower, the decline will continue towards 1.07000 or even lower at 1.06000.
