The strengthening pattern of the US dollar continued on Tuesday trading yesterday which maintained the momentum from last week's close following the good NFP report.
But investors are cautiously awaiting the United States (US) inflation data at the New York session tonight (Wednesday) which will be an important indicator for the Federal Reserve (Fed) heading into the September FOMC meeting.
Meanwhile, the Euro moved under pressure with the strengthening of the US dollar earlier in the week and investors looking forward to the European central bank's policy meeting on Thursday.
The European Central Bank (ECB) is expected to implement an aggressive interest rate cut of 60 basis points to 3.65%.
The price movement on the chart of the EUR/USD currency pair is seen to be decreasing further and lower beyond the level traded last week.
The price has crossed the 1.10300 level and recorded the latest 4-week low at around 1.10150 but still has not reached the target at the 1.10000 zone.
The price slightly increased in the trading of this morning's Asian session seen testing the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart.
A price movement that remains below the barrier will continue to signal bearishness for the price.
If the price continues to decline, the 1.10000 zone will be tested to be broken before the price records the latest low again.
The target will move to around 1.09000 after the price last hovered around that in early trade last August.
However, if the price breaks above the MA50 barrier, this will be an early signal for a possible trend change.
The rise in price will face the resistance of 1.11000 before a higher rise can continue to reach last Friday's highs around 1.11500.
