The US dollar has shown signs of recovery after starting trading in the Asian session on Monday with a weak start.
Market sentiment has begun to lean towards risk again following President Donald Trump's statement that Canada and Mexico tariffs will be continued after previously being postponed for a month.
US consumer confidence data will be watched in the New York session tonight and is expected to drive the US dollar's movement.
If we look at the movement on the EUR/USD currency pair chart yesterday, the price has surged past 1.05000, surpassing last week's trading level.
Reaching a new 4-week high of 1.05280 in the Asian session yesterday, the price plunged again before reaching a level around 1.04600 in the New York session.
The price remained slow in that area at the opening of the Asian session this morning (Tuesday), but was below the Moving Average (MA50) barrier on the 1-hour timeframe on the EUR/USD chart, triggering an early signal for bearish movement.
If the price continues to decline lower, last week's support level at 1.04000 is expected to be retested.
A break below that level would expect the price to continue the bearish pattern and target the 1.03000 focus zone.
If the opposite happens, the price that manages to jump above the MA50 barrier and the 1.05000 level would suggest a continuation of the rise.
Breaking through yesterday's highs would push the price further up towards the next target at around 1.06000.
