EUR/USD Reversing, Trending Turns Bullish?

<p>&nbsp;Starting trading in the new week, the US dollar weakened slightly due to investor caution ahead of the annual Jackson Hole Symposium conference this week.</p><p><br /></p><p>Market sentiment remains in risk-off mode as negative developments in China continue to increase global market concerns.</p><p><br /></p><p>Therefore, investors need to be careful with the uncertain movement of prices for the near term which can change direction at any time.</p><p><br /></p><p><br /></p><p><br /></p><p>If observed on the chart of the EUR/USD currency pair, a change in the price pattern is seen to occur at the beginning of the week where the price started to show a slight increase compared to last week's decline pattern.</p><p><br /></p><p>After the price crossed the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart, the increase reached the 1.09100 level at the beginning of the New York session yesterday before retreating back to the MA50 level.</p><p><br /></p><p>The slow rising pattern continued again at the beginning of the Asian session this morning (Tuesday) testing the highs reached yesterday and is likely to go even higher.</p><p><br /></p><p><br /></p><p>Once the 1.09000 zone has been successfully passed, the next price increase is seen to be towards the concentration level at 1.1000 which will become an obstacle for the price again.</p><p><br /></p><p>Meanwhile, for the expected price drop, a drop below the MA50 level will see the price retest the lowest level reached at the end of last week around 1.08500.</p><p><br /></p><p>Next, the price will extend its decline to the 1.08000 level by displaying a more clear bearish movement.</p><p><br /></p><p>Price movements are however expected to slow down pending the release of PMI data on Wednesday.</p>