The US dollar traded mixed on Monday after a reversal of direction that was shown at the close of last week.
In the last trading sessions of last week, the US dollar showed a recovery after experiencing a severe drop following President Trump's tariff announcement.
If you look at the movement of the EUR/USD currency pair chart yesterday, the direction of price movement varied in different sessions.
The US dollar weakened at the opening of the Asian session yesterday, seeing the price that started in the 1.09000 zone show an increase of 100 pips to the 1.10000 level.
The increase continued in the European session reaching a high of 1.10500 before retreating back down towards the next session.
The price decline returned to the 1.09000 zone at the end of the New York session, which is seen as a support zone during price creation.
Continuing trading in the Asian session this morning (Tuesday), the price showed a rebound to around 1.09700 and tested the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the EUR/USD chart.
Clearer signals continue to be observed for investors to determine a clearer direction for further price movements.
If the price shows a decline again, the 1.09000 zone will be approached again and if broken, it will be a signal for a bearish movement.
The price will continue to decline towards last week's support zone at 1.08000.
On the other hand, if the price increase manages to break through the MA50 barrier and the 1.1000 level, the price has the potential to continue to higher levels.
The target is to return to around 1.11000 and test the resistance zone last week.
