The US dollar was seen to react positively to the publication of the United States (US) NFP employment data report last Friday.
Job growth in March, which was lower than in February, was however slightly better at 236,000 than forecast.
On a more positive note, average hourly earnings rose to a better-than-expected 0.3% while the unemployment rate fell to 3.5% compared to expectations to remain at 3.6% after a surge earlier.
Thus, this latest reading is seen as not putting too much pressure on the central bank, which is expected to slow down monetary policy. Inflation data will be evaluated this week.
The US dollar strengthened as soon as the data was published, but momentum eased again at the close of the week's final trading session.
Examining the price chart of the EUR/USD currency pair, the price movement at the end of last week was seen to be more horizontal after the rising pattern exhibited at the beginning of the week failed to continue.
After reacting to the NFP data report, prices eased back to close trading around 1.09000.
Continuing the opening of the Asian session earlier this week, prices still moving around the closing level are seen hovering below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart to give an early indication of price movement.
If the strengthening momentum of the US dollar remains, the price is likely to drop a little lower and may continue to reach the support level at 1.08000.
A break below that level will be a bearish signal for the price and a lower drop target can be expected.
On the other hand, if the price starts to rise at the beginning of this week, it will give an early indication that the previous rising pattern will resume.
The target is still at the resistance level of 1.10000 which is seen to be tested for the price to record the latest 10-week high level.
