Market sentiment is risky at the beginning of this week as investors witnessed a critical decline in the global stock market.
This is due to the emergence of a Chinese AI application, DeepSeek, which has great potential to challenge the position of American (US) AI applications such as ChatGPT.
Also influencing the currency market, the Yen and Swiss franc showed positive increases in trading yesterday Monday.
The US dollar appeared weak in the European session yesterday, recovered slightly in the New York session and then began to show strengthening at the opening of the Asian session this morning (Tuesday).
As can be seen on the EUR/USD currency pair chart, there are early signs of a price trend change with a decline displayed.
The increase on Monday yesterday managed to reach a new high around 1.05300 surpassing last week's level, but the price fell back below the 1.05000 zone.
In the Asian session, the price dropped to around 1.04300 before the price movement slowed down for a while.
The price has moved below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe of the EUR/USD chart, triggering a bearish signal.
If the decline continues, the price will approach around 1.04000 to test the focus zone as it did last week.
A break lower will drag the price down towards the 1.03000 zone.
However, if the price rebounds upwards, the resistance is at 1.05000 for the price to break before expecting a higher increase.
If the movement pattern of last week continues, the price will push the price to record a new 8-week high towards the target of 1.06000.
