In last week's trading, it was noticeable that the Euro currency showed an attempt to soar after hawkish -toned comments received by investors from the European central bank.
The Deputy Chairman of the European Central Bank (ECB) last week has indicated the possibility for a faster interest rate hike. He even added that the purchase of assets should have ended in July.
That factor triggered the Euro's surge on Thursday, but the surge did not last long as the US dollar again stole the spotlight to strengthen again following comments by Federal Reserve Chairman Jerome Powell.
Powell signaled that an interest rate hike of up to 50 basis points is imminent next month and the hike will be implemented consecutively this year.
This again drove the strengthening of the king of the currency until the close of trading last week and put pressure on the movements of other major currencies.
Looking at the price movement on the EUR/USD pair chart, the price is seen rising from the support zone of 1.08000 to the high level of 1.09300 last Thursday.
However, after the price tested the resistance zone which was also a barrier to the previous week's movement, the price rebounded following the strengthening by the US dollar.
The price hovered again in the support zone of 1.08000 and signaled for a bearish trend change again after the price moved below the Moving Average 50 (MA50) barrier level on the 1 hour time frame of the price movement on the EUR/USD chart.
With the pattern displayed, analysts see the decline in prices will continue this week towards the latest support level around 1.07000 while recording the latest 2 -year low.
But if the price rebounds, the resistance zone at 1.09300 reached on last week's rise will be tested again.
Passing the resistance in the zone will push the price higher targeting the 1.10000 level.
