The main focus now in the market is regarding the United States (US) debt ceiling issue which is seen to be the driver of price movements this week.
It was reported that the White House and Republicans finally reached an agreement to raise the debt ceiling by not setting a maximum debt limit until 2025.
The agreement does not cover national defense sector spending and provides comprehensive funding for health care for the elderly.
The impact of this latest development on the financial market may not be clearly visible at the beginning of this week as most banks are still closed.
A clearer reaction of the market is expected to be seen in the New York session on Tuesday besides important economic data will also be evaluated.
At the end of the week, the US NFP employment data report will be the focus to guide monetary policy setting by the Federal Reserve (Fed).
Looking at the price chart of the EUR/USD currency pair, price movements were still slow at the opening of trading earlier this week and are expected to continue for several sessions following the banks being closed on Monday.
Last Friday, the price was seen to rise slightly to the level of 1.07600 before the price was pushed back down due to the strong US dollar supported by the release of US consumer personal expenditure index data which increased.
The price is back close to the 1.07000 support level but has yet to break through it and bounced slightly to close the week's last trading session.
The price remains moving slowly below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart, which still gives a bearish signal.
If the price decline continues to break through the support level of 1.07000, the price will record the latest 11-week low with a target to reach 1.06000.
However, if the surge occurs again, the price that breaks through the MA50 barrier is seen to try to retest the 1.08000 resistance.
After a clearer bullish trend change signal, the price will continue to rise towards the previous concentration zone which is 1.09000.
