The strengthening of the US dollar was successfully displayed again in the trading sessions last week after the market digested the results of the latest FOMC meeting.
On Thursday, the US dollar showed a decline heading into the results of the meeting, halving the gains recorded during the US election in favor of Donald Trump.
After the Federal Reserve (Fed) announced a smaller interest rate cut of 25 basis points, the US dollar gradually strengthened again while also being supported by some positive US economic data.
The Euro currency is seen to be increasingly stressed by the current situation, in addition to Trump's victory will also increase tariff concerns in Europe.
If you look at the chart of the EUR/USD currency pair, the price that rose to the level of 1.08000 is back down to around 1.07000.
The 1.07000 zone is now seen as a support zone during price making where the price movement reached around that at the close of last week and remained slowly hovering at the opening of the beginning of this week.
A bearish price signal is observed after price declines again moving below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart.
The price tends to continue the downward pattern, but needs to pass the 1.07000 support first.
If the price breaks below the zone, the decline will continue for the price to record the latest 7-month low.
The target for further price declines is towards around 1.06000 after it was last hit in April trading.
But if the price continues to bounce up from the 1.07000, the resistance is at 1.08000 to be tested as at the end of last week.
After successfully overcoming it, the move higher will continue to reach the next focus at 1.09000 or the height before last week's dive took place which is around 1.09500.
