The US dollar ended last week's trading with a dismal performance after failing to maintain a series of continuous price strengthening since the beginning of January.
After reaching a 3-month high the previous week, the US dollar posted a decline last week to record its first weekly loss of the year.
Indications of interest rate cuts by the Federal Reserve (Fed) remain the driver of the US dollar with this week's focus being on the US PCE price index data.
Looking at the price action on the EUR/USD currency pair chart, the price has reached a recent high around 1.08880 last week before leveling off in the last day above the 1.08000 zone.
The price movement hovers around the Moving Average 50 (MA50) line on the 1-hour time frame on the chart which is the watch of investors for further price direction.
A further move higher if continued earlier this week would expect the 1.09000 resistance zone to be tested after overcoming last week's highs.
Next, the bullish movement pattern will continue to push the price higher towards the 1.10000 target.
On the other hand, if the price pulls back below 1.08000, this will be a bearish signal that could see a change in the situation compared to last week.
The price drop will be expected to reach the support level at 1.07000 which was the focus before.
