The United States (US) consumer personal expenditure index data published last Friday made the US dollar continue to maintain its dismal performance from the previous day.
The less encouraging reading of the data increased the tendency towards interest rate cuts by the Federal Reserve (Fed), at the same time adding pressure to the US dollar.
The gloomy situation of the US dollar gave room for other major currencies to strengthen including the Euro.
The Euro had a positive impact following the development of the ongoing election events in Europe.
The euro was also seen opening slightly higher at the start of the Asian session this morning as far-right parties won the first round of French parliamentary elections over the weekend.
If observed on the chart of the EUR/USD currency pair, the price hovered in the 1.07000 zone until the end of last week's trading.
Investors are ready to expect a price increase to happen with a bullish signal of the price moving above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.
Closing the end of the week trading around the 1.07100 level, the price opened in the Asian session this morning at 1.07400 with a gap of 30 pips.
The rise continues past last week's trading levels to around 1.07600 with a target to reach the 1.08000 concentration zone.
If the zone is successfully penetrated, it will be a more clear bullish signal for the price with the increase expected to continue further reaching the target at 1.09000.
On the other hand, if the price pulls back, the 1.07000 zone is seen to be approached again and the price reaction will be observed.
If the price breaks below 1.07000, it is likely that the latest low will be recorded before the price is expected to reach 1.06000.
