The release of European and United States (US) manufacturing and service PMI data at the end of last week made price movements in the market uncertain.
The Euro fell in European session trading last Friday, failing to maintain the strengthening momentum after the European Central Bank (ECB) raised its interest rates for the first time in more than a decade.
Meanwhile, the US dollar was seen moving gloomy in the last session of last week following the release of US manufacturing and service sector data which fell below the contraction level signaling danger for the world's largest economy.
The focus will be on the results of the FOMC meeting this week which will have a big impact on the movement of the US dollar so investors are expected to be cautious in the market at the beginning of the week.
Examining the price movement on the chart of the EUR/USD currency pair last Friday, the price was seen to drop to the level of 1.01300 in the European session before the surge in the New York session reached the height of 1.02400.
However, closing trade at the end of the session, the price moved lower and hovered around 1.02000 following the opening of trade earlier this week.
If the price manages to continue its rise higher, breaking through the resistance at 1.02400 and surpassing last week's high, the initial price target is seen to test the 1.03000 zone.
Next, the increase continues for the bullish trend movement, the price will aim at the height of 1.04000 which is the focus of the previous trading.
On the other hand, if the price jumps past the support level of 1.01600, the decline will continue towards the RBS (resistance becomes support) zone of 1.01000.
For a lower drop, the price is likely to return to the 1,000 parity level which is an important support zone for the price.
In this afternoon's European session, investors will focus on the German ifo survey's reading of business climate data that will influence the movement of the Euro currency.
