The price movement on the chart of the EUR/USD currency pair is seen to be settling down due to the strengthening factor of the US dollar which continued at the end of last week.
The situation was driven by the publication of the United States (US) manufacturing and services PMI report which recorded a strong reading for June, while also lowering the expected percentage of interest rate cuts by the Federal Reserve (Fed) this year.
With the strengthening of the US dollar, other major currencies including the Euro will continue to be under pressure to resume trading in the last week of June.
The German business climate data of the ifo survey to be published in today's European session will influence the movement of the Euro currency.
If observed on the EUR/USD chart last Friday, the price continued the downward pattern from the previous day until it dropped below the 1.07000 level.
The price retook the previous week's low around 1.06700 before leveling off in the last session of the week below the 1.07000 zone.
The price movement remains below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart which is a bearish signal this week.
A further decline is expected to break above the 1.06700 level before making a fresh 8-week low.
The next target is for the price to reach 1.06000 and test that important support zone.
However, if the price bounces back above 1.07000 and also crosses the MA50 barrier, it will be an early signal for a price trend reversal.
The bullish price will try to break through last week's resistance around 1.07500 before continuing its further climb towards the 1.08000 zone.
