Judging by the current performance, the US dollar is seen hovering in the lowest zone around 3 months after the declining situation continued as of last week.
However, before closing last week’s trading, the US dollar was seen showing a pattern of re -strengthening that may continue this week.
The strengthening of the US dollar in the New York session last Friday was supported by readings of US manufacturing and services PMI data showing economic activity maintained a positive growth pattern until May 2021.
As a result, price movements on the EUR/USD currency pair chart became the focus with market reactions meeting some analysts' expectations last week.
The price is seen still failing to pass the resistance zone at 1.22500 after being tested several times with the price decline supported above the level of 1.21500 in the RBS zone (resistance become support).
Last week's price movement is seen to be in a horizontal situation on a bullish trend. The RBS zone 1.21800-1.21500 supports the price from falling lower with the expectation that the price will continue to rise again in recent weeks.
The bulls are likely to overcome the resistance of 1.22500 before heading to the target level of 1.23000 to record the latest 4 -month high.
On the other hand, if the price falls below the RBS zone, investors will begin to prepare for the situation of price trend change on the EUR/USD chart.
The decline is seen heading towards the previous RBS zone at around 1.20900-1.20600 before the lower decline can reach the 1.20000 support zone.
In addition to monitoring the development of Federal Reserve (Fed) speculation on the assessment of policy changes, investors will also need to be vigilant with German and US GDP growth data this week that will affect the Euro and US dollar.
