Market movement was slow at the start of the week as investors scrutinized the US dollar's reaction to dovish remarks by Federal Reserve (Fed) Chairman Jerome Powell last week that weakened the currency king.
The US dollar did not continue to decline but strengthened slightly when the market paid attention to the statement by the President of the Fed St. Louis James Bullard who said the central bank still needs to raise interest rates several more times this year.
In addition, investors are also cautiously monitoring the United States (US) debt ceiling discussions which have not yet reached full agreement.
Monitoring the price movement on the chart of the EUR/USD currency pair yesterday, the price was flat throughout the day above the 1.08000 level after the US dollar was seen not to continue its decline.
In addition, the price also crossed above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart, investors are still watching for further indications of movement.
If the surge is successful, the price will head towards the 1.09000 zone to test that resistance before continuing the rise to higher levels.
Next, the continued increase is expected to reach the target level of 1.10000 again.
However, if the price shows a plunge again below the 1.08000 level, it will be a signal for investors for the price to resume the previous bearish trend movement.
A further decline that continues is likely to break past last week's lows around 1.07600.
Further, the price will reach a concentration level around 1.07000 to record a recent 9-week low.
Investors will be looking at the European and US manufacturing and service PMI data readings shortly which will influence price movements.
