The continued depreciation of the US dollar at the opening of trade early yesterday saw other major currencies continue to increase in value.
The market remains expecting an interest rate cut by the Federal Reserve (Fed) to be implemented at its September meeting, and the situation continues to put pressure on the US dollar.
Thus, the next indication will be observed in Fed Chairman Jerome Powell's speech at the Jackson Hole symposium which takes place at the end of this week.
The Euro managed to record its latest high of the year taking advantage of the prolonged tight situation of the US dollar.
Examining the chart of the EUR/USD currency pair, the bullish pattern continued yesterday surpassing last week's high level around 1.10470.
Notching a recent high of 2024 at the end of the New York session, the price has reached around 1.10800 before slowing around that until resuming the opening trade of the Asian session this Tuesday morning.
The 1.11000 zone is seen to be getting closer to being tested as a resistance that the price needs to pass if it wants to continue the bullish trend movement.
The latest high level will be recorded again with a continuous rise and the target will move to 1.12000.
However, if the price fails to break the 1.11000 resistance and instead shows signs of a reversal, investors should be prepared to witness a bearish pattern.
The decline is expected to retrace its steps around 1.10000 and price reaction will be watched for an indication of whether the extension of the decline will continue or otherwise.
