The US dollar still managed to maintain its positive trading on Monday yesterday although analysts had expected slow movements for the opening of the week.
With expectations for the Federal Reserve (Fed) to be less aggressive at the November meeting, it will be seen to support the increase in the value of the US dollar in the market until there are factors that put pressure back on.
Meanwhile, the Euro fell to its latest 10-week low as the market saw pressure on the European currency ahead of the European Central Bank's (ECB) policy meeting on Thursday which is expected to further cut interest rates by 25 basis points.
Examining the movement on the chart of the EUR/USD currency pair, the price dropped further to yesterday's latest low seen testing the important support zone at 1.09000.
The trend remains bearish with the price movement continuing to be below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart.
At this time, the price reaction in the 1.09000 zone will be observed for investors to get an indication of the direction of further price movement.
If the price clearly breaks below the important support zone, the price decline will continue to the latest low.
The next target price will move to the concentration zone around 1.08000.
On the other hand, if the price makes a surge until it breaks through the MA50 barrier, investors will take that signal to prepare for a trend reversal situation again.
The price increase is seen to be heading towards around 1.1000 to test the nearest resistance for the price.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
The chart displayed above uses the Saracen Market platform. Join the Saracen Lucky Draw contest and win the various exciting prizes on offer. Only a $50 deposit is required to join. CLICK HERE – REGISTER AND WIN EXCITING PRIZES
