After suffering a significant decline in the closing trade last week, the performance of the US dollar remained dismal yesterday as the weak movement continued again.
Investors will remain vigilant awaiting the ISM survey data for the service sector of the United States (US) which will be published in the New York session later tonight.
Next, some more important data will be observed with the main focus being at the end of the week which is the US NFP employment data report for the month of February.
Major currencies took advantage of the room to rise at the beginning of the week yesterday as the US dollar continued to lose ground in the market.
Examining the movement on the chart of the EUR/USD currency pair, the price continued a moderate uptrend until it reached last week's high around 1.08650.
The price movement above the Moving Average 50 (MA50) support on the 1-hour time frame on the chart remains suggestive for the bullish movement to continue.
However, the price needs to overcome the levels of the previous week and further test the resistance zone at 1.09000.
Investors will be wary if there are indications of a repeat of the price drop after failing to sustain the previous bullish pattern.
A drop below the MA50 support line will trigger an early signal for a bearish trend change.
The price will go back down to the 1.08000 zone to test the current support for that price which is still preventing the fall since last week.
If the price breaks below that zone, a decline can be expected to head towards around 1.07000.
