The US dollar got off to a bleak start to the week with yesterday's slide giving early signs that the previous 8-week winning streak may be coming to an end.
The direction of the movement of the US dollar is still unclear while investors are cautiously awaiting this week's important data, namely the consumer price index (CPI) of the United States (US) which will be published on Wednesday.
This will be the main compass for the Federal Reserve (Fed) to make decisions in setting their monetary policy at next week's FOMC meeting.
The Euro currency rose yesterday benefiting from the weakening of the US dollar, but German ZEW survey data on the European session shortly is expected to have an impact on price movements.
Looking at the chart of the EUR/USD currency pair, the price has shown a bullish pattern continuing to trade at the beginning of this week after a relatively flat price movement last week.
The 1.07000 zone is seen as current support for the price that prevents it from falling lower.
The price movement above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart adds a bullish trend indicator for the price.
The price increase if continued is seen to test the closest resistance which is in the 1.08000 zone which was also the focus last week.
If the resistance is also able to be broken, the price can reach higher levels this week with the target being towards 1.08800 and 1.09000.
However, if the price reverses to make a decline again, the price falling below the MA50 support and the 1.07000 zone will trigger a bearish signal for the price to return.
The decline will continue to reach the target of 1.06000 to record the latest 6-month low.
