The US dollar remained hovering at a 5-week high at the market's opening earlier this week after showing a firming price pattern at the close of trade last week.
Price movements this week are expected to be driven by the release of inflation data from the United States (US) which will light a brighter path for the Federal Reserve (Fed) in setting their monetary policy.
If the published data matches the forecast that shows the rate of inflation continues to decrease, it is likely that the Fed will be more inclined to slow down policy and this could have the effect of depreciating the value of the US dollar.
On the price chart of the EUR/USD currency pair, the price in the last week that showed a decline did not manage to cross the 1.08000 level barrier before shrinking again.
The decline continued until the last session of the week reaching back to the level around 1.06700 which was reached at the beginning of the week.
Price movement remains in a bearish trend with price signals below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart.
Further decline if it continues today is seen to be heading to the level of 1.06000 or lower possibly reaching around 1.05000.
The decline will mark the lowest price level for the 6-week trading period.
On the other hand, if there is a rebound, the price that crosses the 1.07000 level will also break through the MA50 barrier to give an early indication of a trend change.
The continued increase will test the 1.08000 resistance before extending the increase further with the target returning to the previous 1.10000 zone.
