The US dollar showed a dismal performance in trading last week, but managed to recover slightly at the end of the week.
The economic growth of the United States (US) in the first quarter of 2024, which came with slower figures than forecast, triggered the tendency for the Federal Reserve (Fed) to move towards easing policy again.
However, the inflation rate previously showed a resurgence in the PCE price index data published in the last session last week also showed positive spending activity in March.
A clearer indication will be observed through the results of the FOMC meeting that will take place this week.
Observing the price movement on the chart of the EUR/USD currency pair, a bullish pattern has been displayed as the US dollar experienced a decline following the publication of US economic data with gloomy figures.
A high was reached on Friday around 1.07500 before the price showed a dive to the current support level around 1.06800.
Starting the trade at the beginning of the week, the price rose slowly in the Asian session to be above the concentration level of 1.07000.
The barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart is tested and the price reaction will be observed to assess the direction of further movement.
If the price rise continues successfully, last week's highs will be attempted to be overcome before the price bullish pattern resumes.
The target for a higher increase is for the price towards the level around 1.08000.
However, it will be a warning sign when the price starts to move back below the 1.07000 level after the tested MA50 barrier fails to be crossed.
A further drop in price will target the previous support zone which is at the 1.06000 zone.
