The currency market movement remained slow and flat throughout last week as expected as most participants took steps to 'rest' for a while in trading at the end of this year.
Despite the slowdown, analysts continue to warn of the risk of volatile price movements due to low liquidity in the market as well as profit-taking activities on the US dollar.
The US dollar is expected to continue strengthening at the opening of 2025, but this week faces the risk of uncertain movement.
The king of currencies weakened slightly at the close of trading last week and investors are watching to see if the situation continues in the remaining 2 days of 2024 trading at the beginning of this week.
If you look at the movement on the EUR/USD currency pair chart, the price leveled off around the 1.04000 zone last week before increasing slightly at the end of the week to around 1.04400.
However, there is a bullish signal for the price to rise higher when seen moving above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
If the price is still able to continue rising to higher levels this week, the target is to return to the focus zone at 1.05000.
A higher rise if successfully continued is expected to be able to reach the previous height of 1.06000.
However, if the price drops below the 1.04000 zone, it will be a signal for a lower price decline to be displayed.
The initial price decline is seen to try to overcome the level reached 2 weeks ago around 1.03500.
Next, the extended decline will also overcome the record low this year recorded in November before the price reaches the 1.03000 zone.
