The US dollar traded weaker at the end of trading last weekend after readings of consumer personal spending data in the United States (US) for April met expectations to remain at the bearish level on previous readings.
The US dollar this week will be influenced by the US NFP employment data report as well as some important economic data such as economic sector survey data.
If the US dollar remains a gloomy move in early trading this week, other major currencies have a chance to display their respective appreciation.
The Euro currency is expected to drive higher following factors of expectations for the European central bank (ECB) to raise interest rates at a June policy meeting after several indicators were presented by President Christine Lagarde earlier.
If you look at the price movement on the chart of the EUR/USD currency pair, the price still maintains the bullish pattern for several weeks.
Until last weekend, the high reached level was around 1.07600 with the current support level of the price being at 1.07000.
Also giving a bullish signal, the price is still moving above the support level of Moving Average 50 (MA50) on the 1 -hour time frame on the EUR/USD chart.
Higher price increases will be expected to head to the 1.08000 focus zone to continue to record the latest highs again this week.
If the price manages to rise beyond the 1.08000 zone, the latest highs for 6 weeks will be recorded.
On the other hand, if there is a reversal of the price direction, the declining price will test the 1.07000 level as well as the MA50 support level.
The decline below these levels gives an early signal for a change in the bearish trend of the price this week.
The price will decline heading back to the RBS zone (resistance become support) at 1.06000 or lower further heading to the zone around 1.05000 which was the focus of previous trading.
