The US dollar showed a significant decline in last week's trading session as the market's focus was entirely on the United States (US) NFP jobs report for July.
Job growth in July slowed, average earnings fell and the unemployment rate soared.
The risk of the US economic recession has triggered expectations of an aggressive interest rate cut at the Federal Reserve (Fed) at its September meeting.
A significant change in price direction can be seen on the EUR/USD currency pair chart in the last session last week due to the NFP report.
Initially, the price showed a continuous downward pattern until around the 1.08000 zone.
On Friday, the price has surged from that zone until it penetrated the 1.09000 zone with a daily increase of around 140 pips recorded.
The price movement then slowed around the 1.09200 high at the close of the week until continuing in the Asian session this morning (Monday).
A trend change signal is assessed after the price starts to move above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart.
With the strong momentum, the price is seen to be inclined to continue the increase higher with a target towards 1.10000.
However, if the price drops back below the 1.09000 zone, it will be difficult for the price to maintain the bullish movement.
On the other hand, the risk price is pressured to fall again to reach the 1.08000 focus zone like last week's trading.
