The decline in the US dollar did not continue last week as the king of currencies was seen starting to exhibit a flat movement towards the end of the week.
However, investors are beginning to be wary of the possibility that the strengthening of the US dollar could be triggered again this week.
This is due to the latest reports of the development of Covid-19 in China when a city in the south of Guangzhou was reportedly ordered to restrict movement (lockdown) for 5 days starting today due to the risk of virus transmission.
Concerns that drive the change in market risk-off sentiment will support the US dollar again to strengthen in the market.
Meanwhile, investors will also scrutinize the minutes of the FOMC meeting which will be published on Thursday along with the minutes of the European central bank (ECB) meeting.
The Euro appears to have failed to receive a positive injection from President Christine Lagarde's hawkish remarks signaling a continuation of interest rate hikes.
The price movement on the chart of the EUR/USD currency pair last week was seen to be in the horizontal zone with the price support level at 1.03000.
The highest level reached in the past week was on Tuesday with a height around 1.04800 before the price flattened below the 1.04000 level until the end of the week.
Triggering initial expectations for a bearish trend change when the price movement at the end of the week begins to be below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart.
Starting trading at the opening of the Asian session earlier this week, prices were slightly lower testing the 1.03000 support level with expectations of a further decline likely to continue if the US dollar strengthens.
The price will be pushed below the 1.02400 level before continuing the decline towards the concentration zone at around 1.01600-1.01000 for a clearer signal of a change in the price trend.
On the other hand, if the price manages to bounce back out of last week's flat zone, the price will have to break through the initial resistance at 1.04000 before overcoming the high level reached last Tuesday.
Next, the resistance zone at 1.05000 will be the next target to be tested at the same time as the latest high since last June.
