Trading at the close of last week was influenced by the release of the United States (US) PCE price index data which measures consumer personal spending.
Data readings for August recorded a slower increase than the previous month, adding more pressure to the US dollar.
The US dollar suffered losses in early trading in the New York session before recovering modestly at the end of the session to close out the week.
If you look at the movement on the chart of the EUR/USD currency pair, the price made an increase in the last session to the level of 1.12000.
Like the previous Wednesday's trading, Friday also saw the 1.12000 level being tested again and still not successfully breached.
The price bounced back down to close the week trading around 1.11600 and the price was still hovering slowly around that at the opening of the Asian session this morning (Monday).
Investors are wary of early week trading as they watch price action testing the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart.
With the US dollar expected to continue to move weakly, prices tend to resume the previous bullish movement pattern.
For a higher increase if it continues, the resistance at the 1.12000 zone needs to be crossed by the price first.
If successful, the price will record the latest high this week with the target heading to the zone between 1.12700 to 1.13000.
On the other hand, if the price fails to show an improvement, it is possible that the price could decline again to approach the current support zone at 1.11000.
The risk is greater for the price to fall if it moves below 1.11000 with the expectation that the price will reach 1.10000.
