The pattern of price movement throughout the past week fluctuated due to the impact of important data that was given focus.
Last week's final session saw the United States (US) NFP employment data report published to have a significant impact on the movement of the US dollar.
Overall, the details of the data component of the report show that the US employment sector in January was encouraging.
This situation is seen to further reduce the projections for interest rate cuts by the Federal Reserve (Fed).
Thus, the US dollar has strengthened to a 7-week high and embedded other major currencies in the market including the Euro.
The price chart of the EUR/USD currency pair is showing a move to the latest 8-week low with expectations that the decline will continue.
Last Friday, the price hovering at the 1.09000 zone has plunged more than 100 pips following the reaction to the NFP data report to below the 1.08000 zone.
A bearish indicator is observed after the price moves back below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the chart.
Closing the trade below the 1.08000 zone, prices hovered slowly in the Asian session this morning (Monday) around 1.07700 with expectations that the downward momentum will continue at the beginning of the week.
The target is for the price to reach around 1.07000 to continue to record the latest low again.
However, if the price manages to climb back above the 1.08000 zone, the direction of the price movement is likely to change after the previous bearish pattern is broken.
The price increase will try to go back to the 1.09000 zone which remains a resistance during price formation.
If it breaks higher, the rise will continue towards the next concentration level at 1.1000.
