Scanning the price movement on the EUR/USD currency pair chart in the past week, the price has shown a rebound in late September trading seeing the US dollar moving weakly against the Euro.
Analysts believe that the profit taking activity by market players before entering the opening of October has pushed the US dollar to decline significantly again and it is possible that the situation could last for a longer period.
However, the US dollar remains the potential to strengthen again at any time due to fundamental factors that support the king of currencies based on monetary policy by the Federal Reserve (Fed).
Meanwhile, the Euro currency is still overshadowed by the energy crisis that is lingering in Europe. Investors will assess the impact of the economic stimulus package launched by Germany last week which has triggered a positive increase in the value of the Euro at the end of September.
The price movement on the EUR/USD chart is still assessed to continue the bullish trend where the price remains above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart continuing at the opening of the market earlier this week.
As for the expected price increase if successful to continue, the 0.99000 zone will be the focus after the price jumps from the 0.98000 horizontal zone.
A higher rise to maintain the bullish trend will push the price towards the 1.0000 parity zone.
However, if the price starts to make a decline below 0.98000 and breaks through the MA50 support level, investors will expect it as a signal of a bearish trend change for further price movements.
The drop in price will go to around 0.97000 before continuing to drop lower towards the target at the 0.95500 support zone which has recorded the lowest 2-year zone last week.
Investors will focus on the US manufacturing sector survey data in the New York session shortly which will influence the movement of the US dollar currency.
