Although the price movement was slow at the beginning of this week, most of the major currencies in the market are seen to have succeeded in overcoming the US dollar which has shown a gloomy performance since the end of last week.
This was followed by the release of economic data from the United States (US) which was less encouraging and again raised expectations for the transition of the Federal Reserve's (Fed) monetary policy to an easing phase in 2024.
The euro managed to rise to its latest 4-month high against the US dollar after surpassing the level reached last week.
Examining the movement on the chart of the EUR/USD currency pair, the price reached the 1.10000 level again last Friday before a higher rise on Monday yesterday managed to overcome the resistance level.
The price increase reached the latest high level around 1.10400 but the price was seen to retreat back to the 1.10000 level at the end of the New York session.
The price is still hovering above the 1.10000 zone continuing the opening trade of the Asian session this morning (Tuesday) with the expectation that the pattern of moderate increase will continue.
If yesterday's high level is successfully overcome, the price will continue to record the latest record with the target to reach around 1.10700 to the 1.11000 zone.
However, the risk of a further fall in prices remains with the uncertainty of trading in the last week of the year.
If the price is seen to begin to decline below the 1.10000 level, this will be a warning sign for investors to prepare for a price drop to a lower level.
The closest target that the price will go to is seen around the 1.09000 zone with the price reaction around that will be observed whether the bearish movement will continue or otherwise.
