The US dollar managed to close trading slightly stronger again at the close of last week after falling earlier when the United States (US) inflation data was published on Thursday.
In the New York session last Friday, the US retail sales data was published rather gloomy before the consumer confidence survey data published afterwards supported the US dollar to strengthen with increased readings.
Analysts also assessed the expected profit taking activity at the end of the week which led to the recovery of the US dollar.
Examining the price movement on the chart of the EUR/USD currency pair, the price surge last Thursday after the reaction to the US inflation data was seen to fail to break through the 0.98000 resistance.
Continuing on Friday, that resistance remained preventing the price from making a higher move when tested for several sessions.
The closing of the price in the last session of the week saw the price hovering slowly above the 0.97000 zone which became the support zone when making the price.
Prices are also seen moving slowly below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart for a bearish signal, continuing through the opening of trading earlier this week.
If the price continues to decline until it passes the 0.97000 support zone, last week's low around 0.96300 will be challenged.
A more pronounced bearish price movement will push the price towards the 20-year low support zone at 0.95500.
However if the price displays a bullish pattern again, the resistance at 0.98000 will once again be the focus that the price will test.
Passing the resistance will support a higher price increase with the target to head towards the 0.99000 zone before reaching the 1.0000 parity zone that was reached at the beginning of last October.
