The US dollar suffered a sharper decline in trading in the New York session yesterday influenced by the report of the ISM survey data for the United States (US) manufacturing sector for May which contracted lower than forecast.
Declining readings following last week's US economic growth data and the PCE price index further raised expectations for the implementation of interest rate cuts by the Federal Reserve (Fed).
Investors are also looking forward to the latest indicators through the employment data component this week including the US NFP on Friday.
Meanwhile, the European Central Bank (ECB) policy meeting has also become one of the focuses this week as it is expected that the central bank will start lowering interest rates by 25 basis points.
Looking at the chart of the EUR/USD currency pair, last Friday's rally failed to test the 1.09000 resistance zone before retreating lower at the close of the week's final session.
However, on Monday yesterday, the price which initially fell to around 1.08300 then displayed a significant surge until it finally managed to break through the 1.09000 resistance zone.
This marks the latest high achieved by the price for the 11-week trading period.
With the price movement remaining above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart, the bullish price trend is expected to continue.
A further move higher will be expected towards the next level of concentration which turns to 1.10000.
But if the current situation again supports the strengthening of the US dollar, the price can fall back below the 1.09000 zone.
The price support level remains at 1.08000 as a focus if the price goes back down again.
