EUR/USD Breaks $1.0600, Aims Higher?

<p>&nbsp;The US dollar traded weak at the start of the week, continuing the downward trend at the close of last week's session.</p><p><br /></p><p>The dollar index showed a decline yesterday but the yield on the 10-year United States (US) treasury moved flat.</p><p><br /></p><p>However, investors remain cautious with the still uncertain situation ahead of the FOMC meeting and some important data including the NFP employment report at the end of the week.</p><p><br /></p><p>While the US dollar is depreciating, most other major currencies are taking advantage of the space to record their respective appreciation including the Euro.</p><p><br /></p><p>Observing the movements on the chart of the EUR/USD currency pair, the price resumed the upward pattern at the beginning of yesterday's week passing the resistance level of 1.06000.</p><p><br /></p><p>After a flat move since the Asian session around 1.05600 as well as testing the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart, the price then jumped around 80 pips.</p><p><br /></p><p>After reaching a high of around 1.06250 in the New York session, the price retreated back to around 1.06000 in trading continuing into the Asian session this morning (Tuesday).</p><p><br /></p><p><br /></p><p>The rising price pattern is expected to continue for the price to target the 1.07000 resistance zone.</p><p><br /></p><p>The zone was almost tested on last week's upside, but prices failed to touch it before the decline occurred.</p><p><br /></p><p>If the price moves below the 1.06000 level again, the MA50 support level will be tested again.</p><p><br /></p><p>If it breaks through lower, the price will go to the previous focus support zone which is at 1.05000.</p>