The US dollar managed to maintain a good trading performance on Tuesday yesterday while the Euro has started to experience a decline.
Market volatility risks keep investors cautious as they wait for European and United States (US) manufacturing and services PMI data to be published today.
Assessment of the current health of the two economies will influence the movement of the currency on the price chart.
The chart of the EUR/USD currency pair on Tuesday yesterday was seen starting to show a bearish pattern after flatlining from the end of last week continuing to the opening of the beginning of this week.
After leveling below the 1.09000 zone, the price has shown a lower decline reaching the 1.08500 level in the New York session yesterday.
Price movement below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the chart shows a clearer signal that the bearish price trend continues.
With the expected drop in prices to continue, the 1.08000 zone is seen to be getting closer to being touched by the price for investors to observe the price reaction around that area.
A lower break would risk a deeper price drop and reduce the accumulated gains since early July.
Meanwhile, if the price shows a surge again, investors will be cautious to assess whether there is a signal to change direction again with the expectation that the 1.09000 zone will be tested as resistance.
A break through that key zone is likely to push the price back up to last week's highs near 1.095000.
