The US dollar is still trading mixed entering the opening of the second week of early 2024 trading.
It seems that the US dollar moved weak again in the New York session yesterday as the market is cautious this week awaiting the release of the United States (US) inflation data.
This data will follow last week's US NFP to continue to provide guidance on the Fed's latest monetary policy setting.
The Euro currency is expected to be driven by the direction of the US dollar as the lack of European economic data is published this week.
Examining the price chart of the EUR/USD currency pair, prices are seen to be moving horizontally in the Asian and European sessions yesterday around the 1.09400 zone.
Then the price increase was observed in the New York session following the decline of the US dollar which increased the price close to the level of 1.09800.
However, the 1.10000 level that was the focus last Friday failed to reach yesterday's price.
The price still has the potential to exhibit an increase following the price movement that is above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart, which still suggests bullish trend movement.
Thus, the resistance at the 1.10000 level will be the target to be broken before the price can continue to rise higher.
If the increase continues, the target will shift to the 1.11000 height zone reached by the price at the end of last December.
However if the price shows a further decline below the MA50 support, it is likely that the lows hit last week around 1.08800 will be retested.
A break above that level would mark a recent 4-week low with expectations for the price to head towards around 1.08000.
