Scanning the market movements of the past week, the US dollar has shown a significant strengthening after the United States (US) economic growth data published on Thursday changed the direction of movement during the reaction of the previous FOMC meeting.
However, on Friday, the US dollar closed the end of the week by shrinking again in addition to the data reading of the US PCE index also meeting the forecast of a slightly lower figure.
Analysts expect the US dollar to have the potential to continue its strengthening after the Federal Reserve (Fed) has been seen to remain in its tightening phase for now.
The Euro recovered slightly with the weakening of the US dollar at the end of the week, following interest rate hikes by the European Central Bank (ECB) failed to boost the European currency last week.
Examining the price chart of the EUR/USD currency pair, the price has recorded a low of around 1.09430 last Friday, but bounced back in the final sessions before ending trading around the 1.10200 level.
Opening trading in that area earlier this week, the price hovered slowly below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart, signaling a bearish move.
If the price resumes its decline below 1.10000, last week's low is likely to be surpassed before the 1.09000 zone is tested.
Beyond that zone, the price will continue to drop lower towards around 1.08000.
However if the price shows a rising pattern this week, moving above the MA50 support level will expect last week's high level around 1.11500 to be challenged again.
If successful, the target will move to the height of 1.12000 for the price to test the resistance.
