Last Friday, the US dollar displayed a gloomy movement in the market that seemed to fail to maintain the previous positive momentum.
The last day of trading of the week was likely driven by profit-taking activities by investors after the significant strengthening of the US dollar the previous day.
Despite closing the last day of trading with a gloomy mood, the US dollar managed to display its best weekly performance in over 1 month.
Examining the price movement on the EUR/USD currency pair chart, it can be seen that the price bounce occurred again in the last trading sessions of last week.
On Thursday, the price plunged 150 pips to a level around 1.02250, but the price rose again to approach the focus zone at 1.03000.
The price movement remained slow in that zone at the opening of the Asian session earlier this week and was seen testing the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the EUR/USD chart.
The expectation for the US dollar to continue to strengthen after this increases the tendency for the price decline to continue this week.
If the price drops below 1.03000, the price decline will continue and is expected to surpass the level reached last week.
The next target is to reach around 1.02000 for the price to continue to record new lows again.
However, if the price increase is still successful at the beginning of this week, the price is likely to return to targeting around 1.04000 again.
The zone around this was the focus of trading in the last weeks of December 2024.
