The US dollar continued its strengthening at the beginning of the week yesterday despite the United States (US) market holiday in conjunction with Veterans Day, maintaining momentum at the close of last week's trading.
Sentiment of Donald Trump's election victory last week remains a positive boost for the US dollar, depressing most other major currencies in the market.
The euro fell to a 7-month low due to the strengthening pressure of the US dollar, in addition to the risk factor that the European zone will face tariffs under the Trump administration.
Examining the price movement on the chart of the EUR/USD currency pair, the price has fallen lower yesterday past the support zone last week at 1.07000.
The situation was anticipated earlier by investors following a bearish price signal that remained moving below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart.
The extended decline has hit its latest low since last April around 1.06300 before leveling off towards the close of the New York session.
Price movements remained slow continuing the trading session of Asia this morning (Tuesday), but the tendency is for prices to continue the bearish trend.
A lower drop is expected to approach the important zone at 1.06000 for the price to test the support of the focus with a reaction to be observed.
A lower breakout will push the price further down with the target moving to 1.05000.
On the other hand, if the price tries to make a rebound, the 1.07000 level is seen as a resistance that will be tested by the price after yesterday's decline has passed it.
A continued rise above the MA50 barrier will signal an early trend change before the move towards 1.08000.
