The US dollar ended trading in the last session last week with a dismal performance following the reaction to the published PCE price index data.
Data measuring personal spending by United States (US) consumers matched forecasts for a slowdown in February, leaving the US dollar weak to close out trading at the end of the first quarter of 2024.
Federal Reserve (Fed) Chairman Jerome Powell then commented on the data and the current US economic environment.
According to Powell, the data presented is in line with the central bank's expectations and currently the economy is still in a strong state and there is no need to rush to cut interest rates.
If you look at the price movement on the EUR/USD currency pair chart, the close of last week saw the price hovering below the 1.08000 level which became a resistance when making the price.
The price also moved below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart signaling for continued bearish movement.
If the price maintains last week's downtrend, the lows reached around 1.07700 will be surpassed to record the latest 6-week lows.
The target for the next decline is towards the zone around 1.07000 by maintaining the bearish trend.
However, if the price manages to move up above the 1.08000 level, it will signal a trend change after crossing the MA50 barrier.
A further move higher is expected to overcome last week's trading levels before the price reaches the concentration zone at 1.09000 again.
