The US dollar closed trading last weekend with a slight rise after a dismal performance exhibited following reactions to the FOMC meeting.
Expectations for a strengthening of the US dollar by investors faltered despite the Federal Reserve (Fed) raising interest rates at policy meetings as had been expected.
But analysts are of the view that the US dollar is likely to strengthen again in the near future.
The depreciation of the US dollar last week has given way for most other major currencies in the market to trade slightly higher.
Like the price movement on the chart of the EUR/USD currency pair, the price has risen in the last week surpassing the high reached in the previous week, reaching the level around 1.11300 in the SBR zone (support become resistance).
After testing the SBR zone and failing to continue higher, the price made a decline until it was supported by the 1.1000 level at the end of the week.
Investors began to be wary of bearish trend changes again after the price was below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame after the decline.
However, a clearer strengthening by the US dollar is awaited by investors for further movement signals.
If the price drops below the 1.1000 level, further declines are expected to head back up to the 1.08000 support zone which was the focus of the early March decline.
On the other hand, if the price spike occurs again, last week's bullish pattern is likely to continue beyond the SBR 1.11300 zone.
A higher rise is seen to test the 1.12000 focus level before maintaining the bullish trend for the target heading up to the 1.14000 high again.
