A mixed market reaction was observed in the last trading session last week which saw a significant movement on the US dollar.
In focus, the ISM survey data for the manufacturing sector in the United States (US) for February was lower than forecast.
The contractionary signal of the sector suggests a tendency for the Federal Reserve (Fed) to be ready to move into the easing phase of their monetary policy.
Several other important data will be in focus this week including the NFP jobs report for investors to continue to get an indication of the Fed's policy.
Examining the price movements that occurred on the chart of the EUR/USD currency pair last week, there are important zones of note.
Several times the price was seen testing the RBS zone (resistance become support) 1.08000 and there was a change in direction.
Attempts to decrease the price failed to continue when the price bounced back up again and the situation also happened in the last session last week.
The surge in prices towards the end of the session gave an early signal for a possible change in trend for early trading this week as well.
The price has made a rally past the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart before closing around 1.08400.
Prices resumed trading at the opening of the week and moved slightly higher from the previous close.
If the US dollar remains weak, prices will be driven to make higher gains to overcome the levels reached last week.
The target is to head towards the concentration zone at 1.09000.
On the other hand, if there is a drop again, the price will return to the 1.08000 zone to test the current support for that price.
If broken, a more pronounced bearish move would expect the price to head towards the next concentration level at 1.07000.
