Judging from the overall movement over the past week, the US dollar remained a dismal performer despite a slow recovery mid-week.
For the long term, it is not seen in favor of the US dollar, which is predicted to continue to be under pressure at least until the FOMC meeting in December.
Focused data such as US GDP, consumer confidence survey and PCE price index will provide additional clues to the direction of the Federal Reserve's (Fed) monetary policy.
As the US dollar continues to shrink, the opportunity will be taken by other major currencies in the market to shine, especially the Euro.
European economic inflation data will be watched this week in addition to the speech by Preisden of the European central bank (ECB) Christine Lagarde is also seen to influence the movement of the Euro.
Looking at the price chart of the EUR/USD currency pair, the price moved in a relatively flat range over the past week.
The high level reached was on Tuesday around 1.09600 while the decline reached 1.08600 on Wednesday.
On Friday, the US dollar continued to weaken with the price increase shown moving above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart as a bullish signal.
Continuing the opening in the Asian session this morning (Monday), the price slowed around the closing level of the last session last week at 1.09400.
The expectation for the increase to continue again this week will surpass the height of 1.09600 last week before recording the latest high level.
The target is to test the 1.10000 resistance with the potential to continue the rise to higher levels.
However, if the price drops below the MA50 level, this will be a warning for bearish price movements to be displayed.
A further drop in price if it occurs can be seen to reach back to around 1.08000 before the price reaction around it will be observed for the next price direction indication.
