Gloomy market movements at the beginning of the week with investors seeing the US dollar still continuing its declining pattern from last week.
Investors are seen in a state of alertness awaiting the release of United States (US) consumer inflation data on Wednesday which is an important indicator for the Federal Reserve (Fed) in setting their monetary policy.
First, US producer inflation (PPI) data will be the focus of tonight's New York session as an early indicator.
Examining the current price movement on the chart of the EUR/USD currency pair, the price continued to rise during Monday's trading yesterday towards the concentration zone at 1.08000.
As expected, there was an interesting reaction when the price tested the resistance zone and then pulled back towards the close of the New York session.
The price leveled slowly in the Asian session this morning (Tuesday) below the 1.08000 zone but is seen hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart which is still signaling a bullish movement.
If the uptrend continues, the price will break through the 1.08000 resistance and record the latest 5-week high.
The target is to head to the next concentration zone at around 1.09000.
On the other hand, if the price fails to continue its rise past the 1.08000 resistance and starts to decline below the MA50 support line, investors will prepare for another price drop.
The decline is expected to return to the 1.07000 zone by surpassing the level reached last week around 1.07300.
A clearer direction of price movements will be known after inflation data is published this week.
