Market movements at the beginning of the week slowed after investors witnessed the biggest weekly drop for the US dollar following the impact of key data releases.
Analysts view the movement of the US dollar to be more flat this week while being cautious ahead of next week's FOMC meeting.
However, ancillary economic data will also be monitored this week such as United States (US) retail sales as well as unemployment benefit claims which can also affect the US dollar.
Other major currencies in the market still have a chance to further strengthen their value this week, especially the Euro.
European investors will be wary of Euro trades throughout the week ahead of policy meetings that will also take place next week.
If you look at the movement of the EUR/USD currency pair chart, the price remained flat throughout Monday yesterday, just like last Friday's pattern above the 1.12000 zone.
Despite the slowdown, the price is still holding above the Moving Average 50 (MA50) support level on the 1-hour time frame on the chart which signals that the price is still in bullish mode.
Investors are waiting for a surge to expect last week's increase to continue after this one.
The price increase could lead to the 1.13000 level or reach 1.14000 to record a recent 17-month high.
In the event of a further drop in price below the MA50 support level and beyond 1.12000, a bearish pattern is expected to begin.
The price will move down to the previous concentration zones around 1.10700 and the 1.10000 zone which will invite an attractive reaction to the price around it.
