In trading last Friday, the US dollar was seen not to continue its strengthening after witnessing the king of the currency 'show stripes' on the previous Thursday.
The strengthening was driven by important data such as consumer and producer inflation which recorded an increase, but calmed down a bit at the end of the week when the United States (US) consumer confidence data was published.
The FOMC meeting is expected this week and will make investors wary of the US dollar trading from the beginning of the week.
Meanwhile, the Euro currency is expected to experience further declines this week after the European central bank (ECB) last week signaled the interest rate hike it made was the latest in its monetary policy tightening measures.
If observed on the chart of the EUR/USD currency pair, the trend is still bearish seeing the price moving below the Moving Average 50 (MA50) obstacle level on the 1-hour time frame on the chart.
After falling to around 0.63000, the price rallied slightly towards the end of the week before ending around 1.06600.
If the downward trend continues, the latest low is likely to be recorded with the target heading towards 1.06000.
The last time the price touched that level was in last March's trade.
However, if the price makes an increase above the MA50 barrier level and the 1.07000 level, investors will evaluate it as an early signal of a bullish trend change.
A further move higher if continued will test the resistance level during last week's trade around 1.07600 before heading to the next resistance zone at 1.08000.
