Market sentiment was seen as slightly gloomy if the United States (US) user confidence data published in last night's New York session recorded a lower reading compared to the forecast for September.
In addition, a large decline in US new home sales has also invited concerns about the housing sector to slowly return.
However, the US dollar is seen as still maintaining its strengthening pattern with the market possibly still making positive suggestions towards the US dollar after the hawkish signal at the FOMC meeting last week.
With that, it can be seen on the chart of the EUR/USD currency pair, the price resumed its downward pattern in the New York session last night.
Initially the price increase was shown in the European session with the price testing the 1.06000 zone but failing to stay above it.
Apart from failing to overcome the 50 Moving Average (MA50) barrier on the 1 hour time frame on the EUR/USD chart, the price bounce back downwards confirming the continuation of the bearish trend movement.
So at the end of the New York session, prices touched the latest low and the decline continued at the start of the Asian session reaching around 1.05600.
Still the investors' outlook has not changed, prices are seen likely to continue their decline to lower levels again today and will continue to hunt for a 6-month record low.
The permanent target is to reach the 1.05000 level as the latest support zone for price.
However, if the trend occurs, the 1.06000 level barrier and the MA50 barrier will be tested and investors will watch the price reaction.
If it manages to escape higher, the price will aim to reach the 1.07000 level after the trend change signal is identified.
