Closing trade for the month of July yesterday displayed somewhat mixed market movements when looking at the major currencies being traded.
The US dollar is still showing strengthening especially in the New York session yesterday after the tendency of investors' expectations last week has shifted to monetary policy tightening steps to be continued by the Federal Reserve (Fed) after evaluating published economic data.
The Euro was slightly firmer initially in the European session yesterday after data showed growth in the economy in the second quarter, and Europe's annual inflation rate eased slightly in July.
However, the Euro failed to maintain the follow-on momentum and was pressed again by the strengthening of the US dollar in the next session.
The price movement on the chart of the EUR/USD currency pair yesterday saw an increase initially reaching the level of 1.10450 but the price plunged back to the concentration level of 1.10000.
Continuing trading at the opening of the Asian session this morning (Tuesday), the price continued to decline from the 1.10000 level and the movement below the Moving Average 50 (MA50) barrier level in the 1-hour time frame again gave a bearish signal.
The price is expected to continue its decline towards last week's lows reached around 1.09400.
The 1.09000 zone is seen to be an important zone to be tested before the price continues its further decline and will reach around 1.08000.
Meanwhile, if there is a rebound above the 1.10000 level, it will be a sign for a more bullish price movement change again.
The upside could recapture last week's highs around 1.15000 before switching targets at the 1.12000 resistance level.
The market will watch some more European data before the US ISM survey data as well as JOLTS jobs will be in focus in the New York session shortly.
