Maintaining momentum from last week's close, the US dollar continued to strengthen its value in early trading yesterday.
The United States (US) NFP employment report published last Friday had a positive impact on the current performance of the US dollar which managed to put pressure back on other major currencies in the market.
But investors need to remain cautious of possible changes in the situation ahead of US inflation data to be published this week.
Being the main indicator for the Federal Reserve (Fed), the data will influence the decision of the FOMC meeting that will take place soon.
Examining the price movement on the chart of the EUR/USD currency pair, the price is seen to continue falling lower by maintaining the momentum at the end of last week.
Opened around 1.10800 in the first session of the week, the price dropped to 1.10400 at the end of the New York session to test the support zone.
The price is showing a bearish movement signal that is below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart.
The tendency is for the price to further decline further towards the 1.10000 concentration zone with the expectation that the strengthening of the US dollar will continue.
If it breaks lower, the price could fall all the way to around 1.09000 to record a recent 4-week low.
On the other hand, if the price reverses its direction to increase again after this, the resistance seen to be tested by the price is at 1.11000.
Also breaking the MA50 barrier will trigger an early signal for a trend change before the continued rise will attempt to reach last Friday's highs around 1.11500.
