The change in current market sentiment has changed the direction of movement for the US dollar.
United States (US) President Donald Trump who agreed to delay the implementation of tariffs on Canada for 30 days has calmed down the previously risky market.
The US dollar which initially strengthened at the opening of the Asian session yesterday has moved weaker again in subsequent sessions.
It can be seen on the EUR/USD currency pair chart, the price has closed a 100 pips 'gap' again when it opened lower in the Asian session yesterday.
After slowly hovering above the 1.02000 zone, the price has risen again to exceed the 1.03000 level in the New York session.
The price hovered at the 1.03400 level at the opening of the Asian session this morning (Tuesday) before retreating slightly.
The price action seen attempting to break above the 50-day Moving Average (MA50) on the 1-hour EUR/USD chart is being watched for further price direction.
If the price continues yesterday's upward pattern, the 1.04000 zone is expected to be reached again after being the focus zone in last week's trading.
A further increase will then target the 1.05000 resistance zone that was tested in January.
However, if the price falls back below 1.03000, the tendency is for the price to make a decline towards the 1.02000 zone which was the support in January trading.
A break through the zone will push the price to record a new 3-year low.
