The market was surprised by the frenzy of the US dollar in the last trading session last week when the US NFP employment data report was published.
Initially the US dollar showed a reaction with a decrease when the component on employment data for the month of August was mixed.
The increase in employment was slightly better than forecast, but the average income decreased and the unemployment rate jumped to the highest level since March 2022.
However, the decline of the US dollar was only temporary when the king of the currency strengthened significantly until the end of the last session.
If observed on the chart of the EUR/USD currency pair, the price initially made an increase up to the level of 1.08800.
However, after touching the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame of the chart, the reflected price made a plunge again.
The daily decline reached up to over 100 pips and also broke through the important level at 1.08000.
Touching around 1.07800 at the close of the session and also opening at that level at the opening earlier this week, the price is seen hovering slowly below the 1.08000 zone.
However, with last week's momentum, prices are expected to extend further lower to record a recent 13-week low.
The latest target is to reach the concentration zone at 1.07000 if the US dollar continues to strengthen.
If the opposite is the case, investors may see the price make another rally this week above the 1.08000 zone.
The continued increase will test the MA50 barrier and if it is successfully broken then the price will go to the 1.09000 zone with the initial signal of a change in the bullish trend.
