The US dollar is seen to still maintain its strength but the momentum has started to fade.
Investors are likely to begin to be cautious in the market ahead of the release of ADP employment data which will provide an early look for the United States (US) NFP report at the end of the week.
Published in yesterday's New York session, the US JOLTS job offers data saw a higher-than-expected figure for August.
Although the momentum is fading, other major currencies are still pressured by the US dollar including the Euro.
Therefore, the price movement on the chart of the EUR/USD currency pair remained at the latest low level yesterday.
Although the pattern is relatively flat compared to last Monday, the price has reached 1.04500 in the New York session yesterday for a record 10-month price low.
The bearish trend is seen to be maintained with the price movement remaining below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart.
A further decline is expected towards the 1.04000 target but is likely to slow down as investors take more cautious steps in the market.
If the situation starts to change, the price could bounce back with resistance at 1.05000 being the closest target to test.
After the increase continued which also crossed the MA50 barrier, the 1.06000 level is seen to be the price target again.
