The US dollar has shown excellent performance over the past week with several factors seen supporting it to remain in strong motion.
But the situation changed a little at the end of the week when the US dollar was seen starting to weaken at the close of trading in the last session.
This is due to the market's reaction to the statement by Federal Reserve (Fed) Chairman Jerome Powell who stated that the central bank may not need to raise interest rates due to current factors.
The statement has eliminated the perception of other Fed members who stated that the Fed's policy tightening measures have not yet ended.
It can be observed on the chart of the EUR/USD currency pair, the price initially showed a decline throughout the week until finally reaching the latest 7-week low around 1.07600.
However, there was a rebound in the New York session last Friday, which saw the price go back past the 1.08000 level.
Also giving an early signal for a change in trend, the price has crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame of movement on the EUR/USD chart.
Slow movement continues the opening of the Asian session this morning (Monday) above the 1.08000 zone.
If the rise continues this week, the 1.09000 zone is seen to be the closest zone to be tested.
A higher break will push the price to reach the previous concentration level at 1.10000.
However, if the price is buried below the 1.08000 level, it is likely that the bearish price trend of last week will continue again.
A decline in the price past the previous low of 1.07600 will target the next level around 1.07000.
