The US dollar was traded mixed in last week's trading influenced by several factors driving the current market movement.
After strengthening for a while, the US dollar weakened again until the end of the week following the dovish speech delivered by Federal Reserve (Fed) Chairman Jerome Powell.
Powell signaled an interest rate hike would not be implemented in the near term with the majority of the market expecting a rate hike at the December meeting.
The Euro took advantage of the opportunity to gain slightly against the US dollar, but investors will be cautious this week ahead of the European central bank's policy meeting.
With the previous dovish signal by President Christine Lagarde, the European Central Bank (ECB) is expected to keep interest rates at 4.50%.
The price chart of the EUR/USD currency pair saw the rally that took place at the end of last week's trade testing the resistance level of 1.06000.
However, the price struggled to break through it and until continuing at the opening of the Asian session earlier this week, the price moved slowly below the 1.06000 zone.
The price increase is still expected to happen with the bullish signal of the price being above the support level of the Moving Average 50 (MA50) on the 1-hour time frame of the chart.
However, the price needs to break through the 1.06000 resistance before it can show an increase to higher levels.
If successful, the next price target is to reach the height of 1.06400 before the target changes to 1.07000.
On the other hand, if the price plunges below the MA50 line, the bearish indicator of the price will expect the 1.05000 level to be the target to be tested again this week.
If the price drop manages to break through the support, the price is seen to move towards around 1.04500 which is the focus zone in early October trading.
