Investors should be prepared for the expected change in direction for the US dollar this week after the initial indication at the close of last week.
The focus factors revolve around President Donald Trump ending trade negotiations with Canada and his latest threat to bomb Iran.
Last week the US dollar showed a significant depreciation in value after the development of the Iran-Israel war conflict subsided for a while.
The market sentiment that was reassessed as risky at the close of last week has limited the previous fall of the US dollar and is starting to show an early recovery.
It can be observed that the price movement on the EUR/USD currency pair chart shows that the upward pattern began to lose momentum in the final sessions of last week.
However, the price increase displayed has exceeded the target level at 1.17000 with the latest 4-year high recorded at 1.17500.
The price began to move horizontally above the 1.17000 zone with the loss of the bullish momentum that was initially triggered.
Trading at the beginning of this week is still hovering above the 1.17000 zone and the price is seen climbing above the moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
If the price is still able to continue its rise, the latest target to be reached is at a height of 1.18000.
However, with the expectation of a change in sentiment that can strengthen the US dollar again, the price could be pressured to fall down.
A decline below the 1.17000 level will be an early signal for the beginning of a bearish trend and the nearest price decline target is towards the 1.16000 zone.
