The close of trading last week again saw the US dollar begin to show strengthening on Friday after moving weakly over the past week.
Is the expectation for the US dollar to make a comeback already started?
This is following the previous tightening of monetary policy by the Federal Reserve (Fed) which will drive the rise of the US dollar. The FOMC meeting next week will be the focus.
But investors want to see if the strengthening of the US dollar will happen earlier this week to end last week's dismal performance.
On the price chart of the EUR/USD pair, the price is seen to have reached a high of 1.14800 last week recording the latest 9 -week high.
But on Friday saw the price start to decline again to the support level of 1.14000 testing the latest RBS (resistance become support) zone.
The price movement below the Moving Average 50 (MA50) level has again signaled for a bearish price trend on the EUR/USD chart. Will the US dollar strengthen to support the bearish situation?
If that happens, the price may plunge lower past the RBS zone of 1.14000 and will re -target the previous support zone around 1.12500 and support 1.12000.
But if the US dollar remains weak and continues to rise again, the highs reached last week are likely to be overcome.
A higher rise will lead to the focus resistance zone at 1.15300 which was previously an important zone in October and November trading.
A rise to that level will mark the latest highs reached by the price for the 10 -week trading period.
