A change in the pattern of market movements was observed last week as the August trade drew to a close.
The US dollar as the main character is seen displaying a different performance which is recovering after several weeks of decline.
United States (US) economic data such as the PCE price index and the economic growth report published last week also support the strengthening of the US dollar.
However, analysts still see a tendency for the currency king to weaken again due to expectations of an interest rate cut by the Federal Reserve (Fed) ahead of the approaching meeting.
On the chart of the EUR/USD currency pair, the price is seen to have started to show a change of direction as the continuous rise in the previous weeks stalled at the resistance level of 1.12000.
The bearish pattern started to show with last week's bearish price signal showing the price movement below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the chart.
The decline has crossed the important level at 1.11000 and until the end of the last trading session last week, the price has reached around 1.10500.
The price is expected to continue the pattern at the beginning of this week with a target towards the concentration level at 1.10000.
A further drop from the zone risks a deeper fall in price which could reach around 1.09000.
However, if there is a rebound in price after this, the nearest resistance seen to be tested is at 1.11000 and the MA50 barrier line will also be observed.
If the price manages to break through it, a move higher could happen again with a signal for the price to resume its previous bullish movement towards the previous high of 1.12000.
