The US dollar continued its downward trend at the beginning of the week after the market digested the US NFP employment data report that was published last Friday.
The overall reading on the declining data component has fueled concerns about the risk of a global economic recession, expecting the Federal Reserve (Fed) to ease monetary policy aggressively in September.
The US dollar, which suffered a decline in the last trading session last week, was seen to continue to weaken on Monday yesterday.
The price movement on the chart of the EUR/USD currency pair continued the bullish trend yesterday after the change in price direction was displayed at the end of last week.
The price which has surged past the 1.09000 zone continued its rise yesterday reaching the target at 1.1000.
That recent high became resistance as price retreated back down around 1.09500 at the close of the New York session.
The price remained slow around that continued trading in the Asian session this morning (Tuesday) with the expected price tendency to continue its bullish movement.
If the rise succeeds in breaking the resistance at 1.10000, the price will record a new 8-week high.
The target for the increase to continue is towards around 1.11000 which is the resistance level tested in December 2023.
However, if the price shows a decline again, the 1.09000 zone is seen to be tested as support and if it breaks down, it will signal an early signal for a change in trend.
An extended decline would expect the level around 1.08000 to be hit again after being the focus throughout last week's trade.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
The chart displayed above uses the SaracenMarkets platform, open your trading account at SaracenMarkets today. – CLICK HERE – START TRADING NOW
