The US dollar showed a downward trend throughout last week's trading after Donald Trump officially took office as the new President of the United States (US).
Trump, who seemed a little 'soft' on tariffs against China, reduced pressure on market sentiment, reducing the appeal of the safe-haven US dollar.
In addition, Trump also suggested that interest rates be cut lower in the US as investors await the first FOMC meeting of 2025 this week.
If we examine the movement on the EUR/USD currency pair chart, the price has shown an increase to the 1.05000 focus zone during the last session of last week.
The price movement pattern remains bullish, still above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
The price opened below the 1.05000 level and remained slow in the early Asian session on Monday morning.
If the rise continues early this week, prices above 1.05000 will set a new 7-week high.
The target for a higher rise is to reach 1.06000 to retest the resistance level that was the focus in early December.
Be alert if price action starts to show signs of a trend change from last week.
A break below the MA50 line will re-approach the support level at 1.04000.
A fall lower would expect a decline towards the previous focus zone around 1.03000.
