The trading of the US dollar last week was considered to be still mixed as the market will wait for a clearer indication this week through the United States (US) inflation data report and some other recent data.
The recovery of the US dollar at the beginning of last week was not successfully maintained as the published US economic data declined putting pressure on the king of the currency heading into the week's closing trade.
If this week's data, especially inflation data, comes with disappointing readings, investors will expect the US dollar to continue to weaken while expectations for the Fed's interest rate cut move will rise again.
Examining the price chart of the EUR/USD currency pair, the price is seen to show an increase again last week but still failed to pass the 1.08000 level.
That level remains resistance with prices flat below it at the end of last week's trade.
However, there is still potential for the price increase to continue with a price movement signal that is above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
If this week's rally takes place and breaks through the 1.08000 resistance, the previous bullish pattern will continue for the price to record new highs.
The target is to head to the next concentration zone at 1.09000.
However, a sudden drop in prices could also happen this week with the reaction to the inflation data that will be published.
The decline is expected to reach the 1.07000 level as an initial stop before the sustained momentum will extend the decline lower.
The next focus zone is around 1.06000 after the last time the price traded since mid-April.
