There was a change in the price pattern at the beginning of the week yesterday, which saw the US dollar slightly recover from the continuous decline throughout the last week.
But it is not enough to say that there has been a clear trend change even though there are early signs.
Investors will be cautiously awaiting the release of US consumer inflation data in the New York session tonight which will drive the movement of the US dollar.
If you look at the price movement on the chart of the EUR/USD currency pair, the rising pattern that continued last week seems to have stalled on Monday yesterday.
The increase did not continue, instead the price showed a decline to around the 1.09150 level after crossing the Moving Average 50 (MA50) line on the 1-hour time frame on the chart, which gave a bearish signal.
A slow rise in prices was seen in the Asian session this morning (Tuesday), but prices remained below the MA50 barrier line.
The direction of price movement will be determined by the reaction to US inflation data later tonight.
In case of a price plunge, the 1.09000 zone is the closest to be tested after last week's rally managed to break through that zone.
A further drop in price if it continues is seen to reach the RBS zone (resistance become support) 1.08000.
However, if the price manages to increase again after this, moving above the MA50 will expect the increase to continue towards the concentration level at the height of 1.10000.
The level of last week will be overcome and the price will record the highest level of the latest 10 weeks if the level of 1.10000 is also successfully passed.
