The US dollar ended the February trading session at the end of last week with a good performance supported by the release of data that was the focus of the central bank.
In the last session of last week, the PCE price index that measures personal consumption expenditures in the United States (US) met expectations to increase.
The reading, which was seen in line with previous inflation data, signals that the Federal Reserve (Fed) will keep interest rates unchanged for the near term.
Investors are also following the latest developments after the tension between President Donald Trump and President Zelensky at the meeting last weekend.
This situation is seen as increasing the risk in the market following Trump's tariffs on Mexico and Canada which will also start on March 4.
Examining the movement on the EUR/USD currency pair chart, the price has shown a decline last week after hovering in the resistance zone of 1.05000.
The price fell below 1.04000 with the last session seeing the price reach a weekly low around 1.03600.
However, the price opened higher at the market opening earlier this week around 1.04000.
In the Asian session this morning, the price was seen rising slowly testing the Moving Average 50 (MA50) barrier line on the 1-hour timeframe on the EUR/USD chart.
If the price is able to continue climbing past the MA50 barrier, it is likely that the focus zone at 1.05000 last week will be re-targeted.
Passing the zone will push the price to record a new 13-week high with a target of 1.06000.
On the other hand, if the US dollar strengthens and pushes the price below the 1.04000 level again, the decline will exceed the level reached at the end of last week.
Next, the price, which continues to decline, will head towards the support zone at 1.03000 which was tested previously.
