Market movement was slow and flat on Monday yesterday due to the United States (US) being on holiday for President's Day.
The US dollar was flat at the opening of the week after showing a downward trend throughout the past week.
After investors watched US inflation and retail sales data, this week the focus is on the FOMC meeting minutes and manufacturing and services sector data that will influence the movement of the US dollar.
If you look at the EUR/USD currency pair chart, the price has reached a high of 1.05000 in the increase until the end of last week.
However, on Monday yesterday, the price only leveled off below the resistance zone with slow price movement in the range of only around 30 pips.
Closing the New York session trading around 1.04800, the price showed a slow decline in the early Asian session this morning (Tuesday).
Although slow, the price that started to move below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the EUR/USD chart gave an early sign of the beginning of a bearish price trend.
If the price starts to decline, the expected closest level to focus on is around 1.04000.
Next, with a clearer bearish signal, the price will continue the downward pattern towards last week's support level at 1.03000 again.
However, if the price decline does not occur, investors will expect the upward pattern from last week to continue again, but must first pass the resistance at 1.05000.
After a strong surge is successfully displayed, the price will record a new 11-week high towards the target at 1.06000.
