Looking back on last week's trading, the US dollar was seen to dominate after the market digested the results of the main central bank meetings.
Although the Federal Reserve (Fed) has begun to slow down interest rate hikes, hawkish comments by Fed Chairman Jerome Powell have injected strength into the US dollar.
Even so, at the close of trading last Friday, the price movement was seen to be more flat with the strengthening momentum of the previous US dollar somewhat restrained.
Other major currencies in the market lost due to the 'rage' of the US dollar. Like the Euro, it also depreciated even though the European central bank (ECB) has raised interest rates by surprise to implement quantitative tightening of its asset purchase program.
Assessing the price movement on the chart of the EUR/USD currency pair last week, the price initially managed to reach a 6-month high around 1.07350 then plunged again and closed the trade in the last session around the 1.06000 zone.
Early signs of a bearish trend change make investors wary of a lower price drop this week after prices have started to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart.
If the RBS zone (resistance become support) 1.06000 fails to rebound the price up, a lower drop will strengthen the bearish movement indicator for the price.
The decline will lead to the previous concentration zone at 1.05000 before going to a lower level around 1.04000.
On the other hand, if the US dollar trades weak this week, the price is likely to display a bullish pattern again from the RBS 1.06000 zone towards the 1.07000 resistance zone.
A successful break above that resistance will push the price higher towards the 1.08000 target for a new 6-month high.
