The United States (US) NFP employment data report has been the focus of the market in the last trading session last week.
A relatively good reading of the data component for May has had a major impact on the market, witnessing a significant strengthening of the US dollar currency.
The market evaluates the labor sector which is still good in the US, which is seen to reduce expectations for the Federal Reserve (Fed) to implement interest rate cuts in September.
The latest indication will be watched through this week's US inflation data before the focus turns entirely to the FOMC meeting early Thursday.
Examining the price chart of the EUR/USD currency pair, the significant strengthening of the US dollar has pushed the price down with a daily decline last Friday of around 100 pips.
The price had time to test the resistance zone of 1.09000 before plunging to reach the support zone at 1.08000 at the end of the session.
Price movement below the Moving Average 50 (MA50) line on the 1-hour time frame on the chart gives a bearish signal for trading this week.
Prices opened 30 pips lower in the Asian session this morning (Monday) with movement still remaining slow.
It is likely that the price will continue to decline in the following sessions if the US dollar maintains the strengthening momentum at the beginning of this week.
The lower downside target for the price is towards the 1.07000 level to record the latest 6-week low.
However if the price tries to make an increase again, the initial resistance is at the 1.08000 zone to be tested.
If it breaks, the move higher needs to overcome the MA50 barrier to reach back to the previous resistance zone at 1.09000.
