In contrast to the flat movement towards the end of last week's trade, the US dollar put in a more energetic performance at the early opening of the week.
In a cautious market environment, the US dollar managed to show strengthening on Monday yesterday in the absence of published economic data.
Today (Tuesday), the US dollar will be influenced by the release of JOLTS employment data and the consumer confidence survey in the New York session later.
Before that, the economic growth report in the European zone will be published first in the previous session and will influence the movement of the Euro currency.
Looking at the chart of the EUR/USD currency pair, the price has made an early decline yesterday and is seen to have broken past last week's lows around 1.08300.
The drop has tracked the 1.08000 concentration zone but the price is seen to bounce back a bit before slowing down around 1.08200 until trading resumes in the Asian session this morning.
The price movement below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the EUR/USD chart shows that the price continues the previous bearish trend.
The price reaction around the 1.08000 zone will continue to be watched today for further direction of movement.
If the price breaks below the zone, a further decline is likely to take place to the latest 4-week low with a target to head around 1.07000.
However, if the price bounces back after failing to break through the 1.08000 zone, the upside will be observed whether it breaks through the MA50 barrier.
A continued rise will signal a reversal of the trend and expect the 1.09000 zone as resistance to be retested.
