Financial market movements at the beginning of the week were still mixed, but analysts saw the potential for the US dollar to strengthen in the near term.
This is driven by the statement of members of the Federal Reserve (Fed) who believe that additional interest rate increases are still needed to lower inflation to the central bank's target level.
Even so, the US dollar remains seen moving gloomy yesterday towards the end of the New York session with expected movements today (Tuesday) will also be mixed while investors wait for the United States (US) inflation data to be published later on Thursday.
The Euro currency was affected by the release of German industrial production data in the European session yesterday which saw the figure decline for the June reading.
This is seen to hinder the Euro to take advantage of the movement of the US dollar which is still uncertain at the beginning of the week.
Examining the price chart of the EUR/USD currency pair on Monday yesterday, the price has shrunk and not resumed the surge at the end of last week when the reaction to the NFP report was published.
After reaching around 1.09700, the price again showed a rebound to the concentration level of 1.10000 and ended the trading of the New York session around that.
The surge was also seen to occur after the price tested the support level of the Moving Average 50 (MA50) in the 1-hour time frame but failed to break through.
Continuing trading in today's Asian session, the price slightly declined from the 1.10000 level and again tested the MA50 support level.
If the price bounces back and jumps high above the 1.1000 level again, the price increase will continue to resume the surge pattern of last week.
Passing the 1.10400 level as a resistance last week, the price will head towards the target height of 1.11400 which was the focus before.
On the other hand if the price plunges lower, the support zone at 1.09000 will be tested again this week and it will be observed whether the price will still be prevented from falling lower or break through the plunge.
The continued decline is seen to reach around 1.08000 which will be the target for the latest lows for the price.
