The US dollar continued to strengthen in the New York session yesterday after the market reviewed the US (US) PMI data report for March.
Also supporting the positive movement of the US dollar was President Donald Trump being said to be more flexible in implementing the latest tariffs that will begin in early April.
However, investors remain cautious, anticipating the risk of an uncertain market with the impact of tariffs that could affect economic growth and trigger a surge in inflation.
If we examine the price movement on the EUR/USD currency pair chart, the price has fallen to 1.08000 at the close of last week.
However, at the opening of the week yesterday, the price made an increase until the European session reached around 1.08500.
The price then turned to make a decline again after the US dollar moved stronger again in the following session.
The price increase was also blocked at the Moving Average 50 (MA50) line on the 1-hour time frame on the EUR/USD chart, which maintained a signal for bearish movement.
Prices made a retracement to the 1.08000 support level and slowed around there until trading resumed in the Asian session this morning.
A lower decline is expected to lead to the next focus level at around 1.07000.
If, on the other hand, a bounce from the 1.08000 zone occurs, a retest of the MA50 barrier will trigger a signal for a renewed bullish movement for the price.
Next, the 1.09000 zone will be tested before continuing higher.
