Although the pressure is still shackled, the US dollar still managed to continue its strengthening in the early trading of the week yesterday.
Investors' focus today (Tuesday) will be directed to the release of the United States (US) service sector survey data and JOLTS jobs in the New York session which is seen to influence the further movement of the US dollar.
If the data reading is encouraging, the US dollar has the potential to maintain its strengthening and put pressure on other major currencies in the market including the Euro.
On the chart of the EUR/USD currency pair, prices are seen to still maintain a downward pattern, especially in the New York session yesterday, which continued the movement at the end of last week.
In retrospect, the price has changed direction to make a decline after the previous price increase was blocked at the 1.1000 resistance zone.
The price that has moved below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart is a signal for the bearish movement that continued until Monday yesterday.
As expected, the decline approached the 1.08000 concentration zone and then bounced back until a slow price movement was shown in the Asian session this morning around 1.08400.
Still the price is moving below the MA50 barrier, it is likely that the decline will continue to once again test the support level at 1.08000.
If the price breaks through that level, the lower decline will continue with the target changing to the 1.07000 level.
However, if the situation changes again and sees a further depreciation of the US dollar, prices are likely to rise again.
Passing the MA50 barrier is an early sign for the price to resume the previous bullish movement and then head back to the resistance zone at the height of 1.10000.
