The US dollar had a rather 'sluggish' start to trading at the beginning of the week yesterday when it experienced a slight decline compared to expectations to continue strengthening at the end of last week.
After the absence of important economic data on Monday yesterday, today (Tuesday) the market will focus in the New York session on consumer confidence data as well as JOLTS data that measures the number of new job offers in the United States (US).
This week's focus is more on the US NFP employment data report as well as economic growth (GDP) to assess whether the data readings are in line with the indications from Federal Reserve (Fed) Chairman Jerome Powell's speech at the Jackson Hole symposium last week.
It can be observed on the chart of the EUR/USD currency pair yesterday, expectations were missed when the price drop did not occur, indicating that the US dollar failed to continue its strengthening.
The price, on the other hand, is seen to be flat above the 1.08000 zone after crossing the Moving Average 50 (MA50) barrier on the 1-hour time frame in the New York session yesterday.
The gains were displayed despite the slow pace of trade in the Asian session this morning after early signals for a change in the bullish trend.
The price increase if it continues to the next sessions, will expect the increase to reach the resistance zone at 1.09000 which was also tested last week.
If it succeeds, the higher increase will reach the concentration level at 1.10000 again.
However, if the US dollar is strong again and the price plummets, a drop below the 1.08000 zone will give an early warning to investors.
The price will continue to decline and most likely surpass 1.07700 which is the price support level reached last week.
The price decline could reach the next target level which is in the 1.07000 zone to record the latest low.
