Price movements on major charts were flat at the beginning of the week as investors took precautions ahead of important data releases.
The US dollar was seen declining in the European session yesterday until continuing to the early opening of the New York session, but gradually recovered towards the end of the session.
The uncertain price direction is expected to be clearer after the United States (US) inflation data is published on Wednesday, which is an important indicator for the central bank in setting its policy.
On Monday, the movement on the EUR/USD currency pair chart was seen as a pattern displayed in last Friday's trading.
The price showed an increase until the beginning of the New York session, but retreated back down towards the end of the session.
The price increase remained limited below 1.06000 which is a resistance level and was also tested last Friday when the NFP employment data report was published.
The price has fallen to close at around 1.05500 and is seen to remain hovering around that level at the opening of the Asian session this morning (Tuesday).
The price has fallen below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe on the EUR/USD chart, signaling that the price will continue to decline.
If the price decline continues, the expectation is for the price to test the focus zone at 1.05000.
A break lower is likely to see the price pushed to around 1.04000 which has been one of the previous price focus levels.
However, if the price manages to bounce back and break through the MA50 barrier, the 1.05000 resistance level will be tested again.
A higher rise above could potentially record a new high with a target of heading up to 1.07000.
