The US dollar closed the trade at the end of last week showing a strengthening, and paring some of the previous losses.
However, it did not surprise the market when the analysts had already expected profit taking activity against the US dollar which maintained a declining pattern for 5 consecutive weeks.
The US dollar is still expected to be at risk of weakening again after consumer personal spending data published for March was lower than forecast, further supporting the Federal Reserve (Fed) to slow monetary policy after the banking crisis hit.
The anti-USD currency, the Euro, was among those that came under pressure at the end of last week after the European zone inflation reading published for March came in lower than expected.
This will make it a little more difficult for the European central bank (ECB) to extend monetary policy tightening measures.
Focusing on the chart of the EUR/USD currency pair, the price showed a downward pattern last Friday from the resistance zone of 1.09200 until it touched the concentration level of 1.08000 in continued trading at the opening of the Asian session this morning (Monday).
The price drop that also crossed the Moving Average 50 (MA50) support on the 1-hour time frame on the EUR/USD chart suggests a more bearish price movement change.
If the US dollar maintains its strengthening and pressures the price to fall lower below the 1.08000 level, the decline can be seen to extend towards the next support zone at 1.07000.
However, if the price fails to drop lower and instead bounces back, the resistance zone tested last week will be reached again.
After passing the resistance zone and the price moves above the MA50 support level again, the bullish trend of the previous price will continue with the target to be at the height of 1.10000.
