Towards the presence of some important data that will be a market indicator this week, investors remain wary of uncertain movements especially for the US dollar currency.
After showing a significant decline last Monday, the US dollar began to recover in the European session yesterday to reduce the losses recorded earlier.
However, the strengthening did not succeed in continuing when the JOLTS employment data published in the New York session with figures lower than forecast, at the same time hindered the trading of the US dollar.
It can be observed the price movement on the chart of the EUR/USD currency pair yesterday, the price initially reached an 11-week high and then retreated back down below the 1.09000 zone.
The price drop reached around the 1.08600 level before rebounding around 30 pips and slowly continuing the opening of the Asian session this morning (Wednesday).
The price is also seen bouncing above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart, showing that the price movement is still in a bullish trend.
If yesterday's drop was just a price correction, a rebound would be expected to break back into the 1.09000 resistance zone before being driven higher.
The latest target is still placed at the height of 1.10000 for the price to reach if the US dollar depreciation situation continues.
However, if the opposite is the case, a drop below the MA50 support line will be an early signal for a bearish price movement to begin.
The price drop can be expected to reach back to the price support zone which is around 1.08000.
