The decline of the US dollar in the past week does not seem to continue at the opening trade of the beginning of this week.
Encouraged by the statements made by the Federal Reserve (Fed) officials with a cautious tone, investors are still cautious about the movement of the US dollar this week.
Although the latest economic data of the United States (US) comes with a less encouraging reading, but policy makers are still evaluating carefully before gaining high confidence to start cutting interest rates.
If the price movement on the chart of the EUR/USD currency pair is examined, it is seen that the price has not yet managed to break through the resistance zone at 1.09000.
In the past week, the price has made a rise to test the zone while recording its latest high.
However, at the beginning of yesterday's week, the increase did not succeed in continuing, instead the price moved horizontally and started to decrease slightly below the Moving Average 50 (MA50) line on the 1-hour time frame on the EUR/USD chart.
Continuing trading in the Asian session this morning (Tuesday), the price leveled off slowly around the 1.06000 level with investors prepared for the risk of another price drop.
If the price starts to make a decline, it can be expected for the price to go back to the concentration zone at 1.08000 before.
A drop lower than that will give a clear signal for a bearish trend reversal for the price.
On the other hand, if the price manages to find a pace to make an increase again, the resistance zone at 1.09000 becomes a target to be tested and broken.
If finally the price manages to pass the resistance, a higher increase will be expected to the latest target at 1.1000.
