The Euro currency has the opportunity to show off a better performance at the beginning of this week against the US dollar.
This is because of the hawkish signal by the European central bank (ECB) last week during a policy meeting which saw an aggressive interest rate hike of 75 basis points being implemented.
Meanwhile, the hawkish tone in Federal Reserve (Fed) Chairman Jerome Powell's speech at the end of the week seems to have failed to support the strengthening of the US dollar.
On the other hand, the US dollar showed a declining performance at the close of trading this week while investors will be cautiously awaiting some economic data from the United States (US) this week such as inflation data, producer price index and retail sales data.
The price movement on the chart of the EUR/USD currency pair started to show a positive bullish pattern at the end of last week after the reaction of the ECB meeting.
After the price failed to break through the support level at 0.98800, the price increase continued until it reached the 1.01000 level which became price resistance in the last session of last week.
The price that has moved back above the parity level of 1.0000 and also the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart gives a positive indication for the movement of the bullish trend.
The price increase at the beginning of this week is expected to break through the resistance at the 1.01000 zone before testing the 1.01600 level.
The continued rise is seen to target the high zone around 1.03000 to record a 5-week high.
However, if the price fails to break through the challenge at the 1.01000 resistance, the price decline could happen again and investors will evaluate the signal of a change in the bearish trend of the price again.
Previous focus levels such as the 1.0000 and 0.99500 levels will return to focus for potential as price support levels again.
