While not an encouraging weekly performance, the US dollar managed to maintain its strength until the close of trading last week against most other major currencies in particular against the Euro.
The European currency earlier this week will be driven by French election sentiment with current reports showing President Emmanuel Macron remains ahead of the vote.
Several US -focused economic data such as inflation data and retail sales will have an impact on the strengthening momentum of the US dollar.
Meanwhile, European investors will be vigilant awaiting the outcome of the European central bank meeting on Thursday after there were signals for the European Central Bank (ECB) to raise interest rates towards the end of the year.
On the price chart of the EUR/USD pair, the price hovered in the 1.0800 zone last week managed to continue a slight decline over the weekend hitting the level around 1.08400 for a record 4 -week low.
But the price rose slightly at the end of the last session of the week by testing the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
Starting trading earlier this week, the price opened slightly higher than last week's close but returned to show a decline back to the MA50 level.
It is too early to give any indication to investors, price movements in the European and New York sessions will be monitored.
If the price resumes moving on last week's bearish trend, the support zone at 1.08000 will be tested again after being tested in early March trading.
For a successful lower decline to continue, the target is to head to the zone around 1.07000 for the price to record its latest 2 -year low.
On the other hand, if the price increase occurs, the price resistance that will be tested is seen at the level of 1.1000.
A higher rise beyond that level to signal a change in the bullish trend will target the resistance zone at 1.12000.
