The US dollar is expected to continue to maintain an excellent performance this week after the US NFP employment data report published last Friday posted an encouraging reading.
The increase in employment in the US in February rose to 678,000, beating the forecast of around 400,000 while the unemployment rate fell to 3.8% from 4.0% previously.
With expectations of continuing to strengthen this week, the US dollar was also supported by market sentiment which remained at risk with the war crisis between Russia and Ukraine remaining protracted.
Examining the price chart on the EUR/USD pair, prices plunged sharply last Friday following the market reaction to the issuance of the NFP report with the strengthening US dollar pushing prices to the latest lows since May 2020.
The decline above the 1.1000 level has reached up to the level around 1.08870 in the New York session last Friday.
Prices that have remained moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame over the past week remain giving signals of bearish trend movement continuing into this week.
Continuing trading at the opening of the Asian session this Monday morning, the price continued further lower declines almost touching the latest support level at 1.0800.
The lower decline will be expected to hit the 1.0700 level if the US dollar maintains a strengthening pace.
As for the expectation of a possible price increase, the level of 1.1000 will be a resistance for the price before signaling a change in the bullish trend.
A higher rise is seen to test previous focus levels such as the SBR (support become resistance) zone of 1.11300 and the 1.12000 level.
Investors will also focus on US inflation data and the European central bank (ECB) meeting this week which will influence the movement of the US dollar and Euro this week.
