After the FOMC meeting results were reviewed last Thursday, the US dollar successfully displayed a recovery pattern heading into the final trading sessions of last week.
Analysts see profit-taking activities in the market pushing the US dollar's value back up again after experiencing significant declines over the past few weeks.
This week's focus will be on the United States (US) economic growth data and the PCE price index which can influence the US dollar.
If we examine the price movement on the EUR/USD currency pair chart, the price has shown a decline after the FOMC meeting from the 1.09000 zone until reaching the 1.08000 level at the end of the week.
The target level is currently supporting the price with the price movement at the opening of the early session this week seen hovering above the zone.
However, the price is still below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the EUR/USD chart, which shows a signal for continued bearish movement.
If the decline continues after this, passing the 1.08000 support, the target will shift to around 1.07000.
The price will record a new 3-week low if the decline continues.
However, if the price continues to bounce from the 1.08000 zone, the increase will need to break through the MA50 barrier to signal a trend change again.
Next, the 1.09000 zone will need to be broken before the price will try to challenge the 1.09500 high that was reached last week.
