Through observation, the US dollar has managed to maintain its strengthening pattern for 8 consecutive weeks, becoming the longest period since 2014.
If you look at last week's trading, the strengthening of the US dollar at the beginning was gloomy and more flat at the end of the week.
Investors will be cautious this week by evaluating the United States (US) inflation data published along with several other important data before heading to next week's FOMC meeting.
The Euro currency will be traded cautiously as investors await the outcome of the European Central Bank's (ECB) policy meeting on Thursday.
The price chart of the EUR/USD currency pair is seen to end last week's trading flat in the 1.07000 zone after a decline at the beginning of the week from the 1.08000 level.
If the US dollar continues to strengthen further this week, prices could likely continue the downward trend to lower levels.
However, the price started trading earlier this week above the 1.07000 zone and gave early signals for a trend change after starting above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart.
If the price increase is displayed this week, the 1.08000 level will be reached again which has been a resistance in the previous week.
Prices could continue to move higher after breaking through that resistance for a bullish move that reversed last week's pattern.
However, if the downward pattern is maintained again this week, the price drop will be displayed again with the price about to break through the 1.07000 zone.
The target for the downside is heading towards around 1.06000 to record another recent low.
