After losing momentum at the close of last week's trading, the US dollar showed a re-strengthening at the opening trading of the beginning of the week yesterday, especially in the New York session.
As expected by analysts, the bearish situation is simply a price correction with profit taking activities by market players before the price movement returns to its track again.
The US dollar is seen to maintain its previous excellent performance for the fourth week in a row, but investors still need to be alert to the risk of market volatility at this time.
Examining the price movement on the chart of the EUR/USD currency pair, the price that bounced around the 1.08700 level at the close of the last session last week gradually fell again on Monday yesterday.
Signaling a resumption of the bearish movement, the price moved back below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the chart.
Yesterday's decline is approaching the 1.08000 concentration level again but has not yet touched it, as in last week's trade.
The price movement slowed above that level by around 20 pips at the beginning of the Asian session this morning (Tuesday), but is expected to continue its lower decline in the following sessions.
If the price breaks below 1.08000, the decline will continue while the price records the latest low with the target moving to around 1.07000.
On the other hand, if a bounce again occurs in the 1.08000 zone, the price has the potential to make another rally and investors will look for any indication of a trend change.
The nearest resistance for the price to test is at the 1.09000 zone if the rise continues to head higher.
