The strengthening of the US dollar continued until the last trading session last week after the market situation changed.
An initially dovish FOMC meeting has dampened the strength of the US dollar and expects the decline of the currency king to continue.
But the opposite happened after the surprise interest rate cut by the Swiss central bank which triggered a bit of panic in the market, simultaneously increasing the demand for the US dollar as a safe-haven currency.
The US dollar strengthened for 2 days in a row and pushed most other major currencies to fresh multi-week lows.
Including the Euro, investors are watching the price action on the chart of the EUR/USD currency pair which dropped to a 3-week low.
If observed last week, the surge in prices after the FOMC meeting expected a higher increase to occur, instead the price has declined again and until the last session of the week, the price has approached the RBS focus zone (resistance become support) at 1.08000.
The price movement is below the Moving Average 50 (MA50) barrier line on the 1 hour time frame on the chart suggesting a bearish trend for the price.
The price hovered slowly above the 1.08000 zone at the opening of trade earlier this week in the Asian session.
If the price drops below that zone, the downward pattern of last week will continue again with the price's next target being to reach 1.07000.
But on the other hand if the price rebounds to make an increase after this, crossing the MA50 barrier will expect the zone around 1.09000 to be tested.
A higher climb above the following barriers will signal a bullish move for the price again.
