The strengthening of the US dollar was successfully maintained at the end of the week which changed its movement pattern compared to the beginning of the previous week.
The strengthening was triggered when the inflation data of the United States (US) was published with expectations that fell short of the forecast, which remained at the level of 3.7%.
Speeches by Federal Reserve (Fed) Chairman Jerome Powell this week will be watched as markets get the next indication of monetary policy heading into the meeting in November.
As observed on the chart of the EUR/USD currency pair, the price displayed a bearish pattern starting Thursday that changed direction from the previous movement.
After the rally reached a high of 1.06400, the decline resumed until the low of the week reached 1.05000 last Friday.
The 1.05000 level is seen as current support for prices where prices are moving slowly above that zone at the opening of the Asian session this morning (Monday).
However, the price that remains moving below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the EUR/USD chart indicates a still bearish trend.
If the decline continues, the current support level of 1.05000 will be breached and then the price is likely to head towards around 1.04500 which was the focus of early October trading.
If the decline continues lower, the target is for the price to reach the 1.04000 zone.
Meanwhile, a successful rise above the MA50 barrier will be an early signal for a change to a bullish trend to take place this week.
The rise if continued could reach the 1.06000 level again or the height of last week at 1.06400 which has been reached.
