The United States (US) NFP employment report published at the end of last week saw a major impact on market movements, especially the US dollar currency.
Overall, the jobs report for August was good and supported the strengthening of the US dollar as trade headed to the close of the week's final session.
The latest indicators also reduce expectations for aggressive interest rate cuts to be implemented by the Federal Reserve (Fed) at the approaching September meeting.
This week, the US inflation data will be the main indicator that the Fed observes and will also influence their monetary policy decision.
As a result of the NFP report last Friday, it can be observed that volatile price movements occurred on the EUR/USD currency pair chart in the New York session.
The price initially surged to a high of around 1.11500 when the initial reaction to the report was published.
However, after the US dollar strengthened again, the price was pushed down below the 1.11000 level and then reached 1.10700.
Continuing trading at the opening of the Asian session earlier this week, prices hovered slowly around last week's close, around 1.10800.
A bearish signal is observed when the price movement now begins to be below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart.
The tendency for prices to continue to decline lower at the beginning of this week expects last week's lows around 1.10300 to be headed.
A further decline if extended is seen to reach the concentration zone at 1.10000.
However, if the price surges above the 1.11000 level, it will give an early signal for the pattern of last week's price increase to continue again.
The upside will try to challenge the highs reached last Friday before continuing towards the target at the 1.12000 resistance.
