Following the public holiday in the United States (US) yesterday in conjunction with Memorial Day, the closed US market led to slow movement especially for the US dollar currency as expected.
However, the situation is likely to continue for the next few days as investors will remain vigilant awaiting important data reports that await at the end of the week such as the PCE price index which is also watched by the central bank.
If observed on the chart of the EUR/USD currency pair, the price moved flat and slightly increased while the US dollar was seen to continue its depreciation since the close of last week.
The increase is gradual, but investors should also be wary of the Euro currency, which is at risk of plunging after clearer indications were given by members of the European central bank (ECB) to start cutting interest rates in June.
While the US dollar is still weakening, the Euro is seen taking the opportunity to continue to rise for now.
The price movement on the EUR/USD chart is also seen displaying a bullish signal by being above the Moving Average 50 (MA50) support line on the 1-hour time frame of the price movement.
The increase if continued is seen to test the 1.09000 resistance zone that failed to be reached last week.
Passing that resistance, the price will record the latest 10-week high before the price target will move to the 1.10000 level.
However, if the price shows a fall again, the support level at the 1.08000 zone will be the focus to be tested again.
If the price continues to break down, it will be a more clear bearish signal for the price to continue its decline and the price is at risk of reaching around 1.07000 again.
