After trading weakly over the past week, however, the US dollar managed to show a re-strengthening last Friday.
Analysts saw a clearer signal for the Federal Reserve (Fed) getting closer to ending monetary policy tightening after examining the United States (US) inflation reading in data published last week.
Therefore, the US dollar is expected to move weakly towards the FOMC meeting in early May.
However, at the end of last week, although the US retail sales data was also published declining, the US dollar continued to show strengthening with analysts assessing profit-taking activity at the end of the week.
The situation was also supported by a hawkish statement by Fed Governor Christopher Waller who stated that the central bank still needs to raise interest rates further.
Therefore, the US dollar is still seen to be moving a little stronger when it resumes trading at the opening of the market earlier this week.
Looking at the price chart of the EUR/USD currency pair, the price that reached the high level of 1.10700 at the end of last week began to plunge again in the final sessions until it crossed the 1.1000 level.
The drop below the Moving Average 50 (MA50) level on the 1-hour time frame on the EUR/USD chart also triggered the initial signal of a change in the trend towards a more bearish direction.
Slow price movements in the Asian session this morning (Monday) but still showing a downward pattern below the 1.1000 zone.
If the decline lower continues into the next sessions, the 1.09000 zone is seen as the closest to be tested.
A break lower will push the price towards the concentration zone at 1.08000.
On the other hand, if the price manages to jump back past 1.10000, it is likely that the previous bullish trend will continue again.
The price needs to break the highs reached last week to set a new record with a target to head towards 1.12000.
