The US dollar continued to strengthen to a 2-and-a-half-month high, maintaining its strong performance for the fourth week in a row.
The Federal Reserve (Fed) monetary policy expectation factor remains supportive of the US dollar while the latest news in the market is awaited.
PMI data for the manufacturing and services sectors due to be published on Thursday is expected to drive further price movements.
Against the Euro, the US dollar has managed to continue strengthening to a 12-week high above last week's trading levels.
It can be observed on the chart of the EUR/USD currency pair, the price has reached the target zone at 1.08000 before the price slows down to resume the opening of the Asian session this Wednesday morning.
Investors are watching the price reaction around the important zone with the expectation that the price movement will continue the bearish trend which is seen to remain below the Moving Average 50 (MA50) line on the 1-hour time frame on the chart.
If the price continues to sink lower, the latest low will be recorded again with the latest target moving to around 1.07000.
On the other hand, if it manages to show a bounce from the 1.08000 zone and then break through the MA50 barrier, this will be an early sign of a trend change.
The price increase if it continues will go to the 1.09000 zone which is one of the focus zones in the previous trading.
