The market focus at the opening of the week was on the release of manufacturing and services PMI data in the European and New York sessions.
The readings were mixed, with the December manufacturing PMI figures declining, while the excellent services sector showed higher readings.
Thus, there was a mixed movement for several sessions with the Euro and US dollar trapped in a slow price range.
If we look at the EUR/USD currency pair chart, the price remained hovering at the 1.05000 focus zone with declines reaching around 1.047000 while the price increase stalled as far as the 1.05200 level.
Resuming trading in the Asian session this morning (Tuesday), the price was above the 1.05000 zone, giving an early signal for a bullish movement as the price moved above the Moving Average 50 (MA50) line on the 1-hour time frame on the chart.
Investors will remain vigilant to watch for further clues with today's focus on European economic data that will influence the Euro, while in the New York session tonight, US retail sales data will drive the US dollar.
If the price surges, the target is to reach the 1.06000 zone again as in the previous week.
The zone still remains an important resistance that has prevented higher price increases for 4 consecutive weeks.
Meanwhile, if there is a decline below the 1.05000 zone, the price risks continuing its decline to continue last week's bearish pattern.
The price decline is expected to reach around 1.04000 or break lower to record a new 4-week low.
