The advantage returned to the US dollar at the end of this week's trade following the escalation of tensions in the Middle East.
It is reported that Israel has launched a retaliatory attack this morning on Iran after several days of discussions following the airstrikes launched by Iran last weekend.
Tensions are expected to continue after Iran has previously warned it will escalate attacks if Israel retaliates.
Surely this risky market environment (risk-off) will increase the attraction of safe-haven trading including the US dollar currency and gold assets.
This situation has given additional support to the US dollar which is seen to have started to show recovery in the New York session yesterday.
If you look at the price movement on the chart of the EUR/USD currency pair, the rise failed to touch the concentration level of 1.07000 before the price retreated back down.
A price bearish trend change signal is observed after a decline occurs below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the chart.
With the strengthening of the US dollar in the Asian session this morning, the price continued to decline lower towards the support zone at 1.06000.
If the zone is broken at the end of this week, further decline in price is expected to reach around 1.05000 for the latest record low of the year.
However, if on the contrary the price makes an increase upwards again, the resistance is at 1.07000 to test and try to break through.
If it breaks through to the top, this will be a signal for a change in the bullish trend again for the price with a target that will focus on 1.08000.
