The US dollar showed positive movement with a slight increase in value in trading yesterday Tuesday after the market moved slowly at the beginning of the week due to the United States (US) holiday in conjunction with the President's Day celebration.
Market sentiment, which is considered risky, supports the US dollar to rise slowly after a continuous decline throughout the past week.
Investors will await the FOMC meeting minutes report to be released early Thursday morning which will drive further movement in the US dollar before the focus shifts to PMI data at the end of the week.
Observing the movement on the EUR/USD currency pair chart, the price is retreating from the height of 1.05000 reached at the close of last week and until yesterday's New York session, the decline has approached around 1.04500.
The price movement remains slow around that point, continuing trading at the opening of the Asian session this morning (Wednesday) with expectations that the downward pattern will continue.
The price being below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe on the EUR/USD chart shows a bearish signal that could push the price to the nearest focus level at 1.04000.
If the price still breaks down, further price declines are expected to re-reach last week's support zone of around 1.03000.
On the other hand, if the price bounces back to make another increase, the resistance zone at 1.05000 will be tested again.
Continuing last week's bullish pattern, a price increase above 1.05000 will record a new 10-week high with the target shifting to 1.06000.
