The Euro appears to have failed to take advantage of the US dollar which was trading under pressure at the end of last week.
The US dollar is showing a decline after the results of the latest FOMC meeting, but the pattern of falling value is seen as moderate and not very significant.
For the long-term period, analysts expect the decline to continue for the US dollar following an aggressive interest rate cut of 50 basis points to 5.00% by the Federal Reserve (Fed) signaling the beginning of a shift in monetary policy.
For movements on the chart of the EUR/USD currency pair, the price increase at the end of the week failed to record a new high to overcome the level during the reaction of the previous FOMC meeting.
On Friday, the price movement was just hovering in a slow range between 1.11800 to 1.11400.
The price is still moving above the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart, signaling that the movement is still in a bullish trend.
With the tendency for the US dollar to continue its decline, the price is still targeted towards the 1.12000 zone as an important resistance.
If prices finally manage to break through that resistance, the latest high will be the highest since last year's July trade.
The next target is at 1.12700 to 1.13000 as a focus zone if the rising pattern is still successfully maintained in price.
On the other hand, if there is a change in the direction of the price movement, a decline will be expected to test the level of 1.11000.
Dropping lower and indicating a deeper decline as prices are expected to hit the previous 1.10000 support zone.
Investors at the beginning of this week will be watching the European and US manufacturing and services PMI data, which will influence the movement of the Euro currency and the US dollar.
