The development of elections in Europe continues to affect the movement of the Euro currency at the beginning of this week.
A bright opening for the Euro in the early Asian session yesterday before German inflation data showed preliminary readings that failed to pick up as forecast.
The US dollar, on the other hand, put pressure on it again when it managed to show a re-strengthening in the New York session yesterday.
At first, the US dollar weakened for a while as soon as the ISM survey data of the United States (US) manufacturing sector was published, but the king of the currency showed a recovery towards the end of the session.
Looking at the chart of the EUR/USD currency pair at the beginning of the week yesterday, the price continued to rise to its latest 3-week high after opening higher in the Asian session.
The price reached around 1.07700 before retreating back down in the New York session to reach the 1.07200 level.
The decline was also seen testing the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart which bounced signaling that the price movement is still in a bullish trend.
Prices were flat in the Asian session this morning (Tuesday) around 1.07300 with expectations for price increases to continue again.
If a successful increase occurs again, yesterday's high level will be overcome before the price goes to the concentration zone at 1.08000.
A more clear bullish movement will be seen after the price breaks through the 1.08000 zone before continuing the climb to the next focus at 1.09000.
However, if the US dollar manages to maintain its strengthening after this, the price could drop lower below the MA50 support line and trigger a bearish signal for the price.
The price drop will test the important zone at 1.07000 which has been the focus for the last few weeks.
For continued lower declines, the latest lows will be recorded with a target of 1.06000.
