The US dollar traded weak at the start of the week, continuing the downward trend at the close of last week's session.
The dollar index showed a decline yesterday but the yield on the 10-year United States (US) treasury moved flat.
However, investors remain cautious with the still uncertain situation ahead of the FOMC meeting and some important data including the NFP employment report at the end of the week.
While the US dollar is depreciating, most other major currencies are taking advantage of the space to record their respective appreciation including the Euro.
Observing the movements on the chart of the EUR/USD currency pair, the price resumed the upward pattern at the beginning of yesterday's week passing the resistance level of 1.06000.
After a flat move since the Asian session around 1.05600 as well as testing the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart, the price then jumped around 80 pips.
After reaching a high of around 1.06250 in the New York session, the price retreated back to around 1.06000 in trading continuing into the Asian session this morning (Tuesday).
The rising price pattern is expected to continue for the price to target the 1.07000 resistance zone.
The zone was almost tested on last week's upside, but prices failed to touch it before the decline occurred.
If the price moves below the 1.06000 level again, the MA50 support level will be tested again.
If it breaks through lower, the price will go to the previous focus support zone which is at 1.05000.
