The change in the direction of the US dollar currency last week has changed the price movement pattern on the main charts.
A significant strengthening of the US dollar was triggered last week after the market reacted to the published United States (US) inflation data.
The latest reading for US annual inflation for March recorded a higher-than-expected 3.5% (3.4% forecast) after a 3.2% increase in February.
The reading, which was seen accompanying the employment report in the previous week, has sparked expectations that the implementation of interest rate cuts by the Federal Reserve (Fed) is likely to be delayed.
Thus, the expectation for the Fed to maintain the existing tight policy has supported the US dollar to return to strength again.
Examining the chart of the EUR/USD currency pair, the price has displayed a weekly decline of around 250 pips from the high level near the 1.09000 zone to reach 1.06300.
The European central bank's (ECB) policy meeting last Thursday did not have a significant impact on price movements after interest rates were maintained, rather it was driven more by US dollar sentiment until the end of the week.
After the decline broke through the 1.07000 support zone, the price now recorded a new low for the 5-month trading period.
The tendency is for the price to continue its decline lower this week by maintaining the bearish trend of the price which is below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame of the EUR/USD chart.
The price will test the level of 1.06000 as the closest concentration level before the decline continues lower to the next target at around 1.05000.
Meanwhile, if there is a price rebound this week, the closest resistance seen to be tested is at 1.07000.
Passing that level will be an early signal for a change in the price trend before the increase continues towards the 1.08000 level.
