The Euro showed a recovery in early trading yesterday as political uncertainty in Europe eased a bit.
The global market sentiment that also recovers also has a depreciating effect on the US dollar as a safe-haven currency.
However, the market remains wary of a potential strengthening of the US dollar again following last week's hawkish tone at the latest FOMC meeting.
For today (Tuesday), some data will be the driver for both the Euro currency and the US dollar, namely the final reading of European inflation as well as the ZEW survey of German economic sentiment in the European session, and in the New York session the US retail sales data ) will be observed.
Looking at the chart of the EUR/USD currency pair, the price has dropped to a 6-week low last Friday reaching 1.06600.
But at the opening of the early week yesterday, the price leveled above the 1.07000 zone before showing an increase until the end of the New York session to around 1.07300.
The slow price around that level continued trading in the Asian session this morning, but the price movement back above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart gave an early signal for the bullish trend to begin.
If the rally continues, the 1.08000 zone will once again be a target to test after being the focus of trading in recent weeks.
A higher move after the price maintains a bullish movement will push the price towards the resistance zone at 1.09000.
On the other hand, if the price is pressed to fall back below the 1.07000 zone, the downward pattern of last week will continue again.
A further drop in price after passing the level reached at the end of last week will then target the focus support zone at 1.06000.
