The US dollar showed a recovery in trading at the end of last week after positive conversations between President Donald Trump and his counterpart, Xi Jinping, which again eased tensions in the US-China trade war.
In addition, the US NFP employment report published in the New York session on Friday also recorded good readings.
The increase in jobs in May in the US of 139,000 was better than the forecast of 126,000 although it decreased from the previous month.
Average hourly earnings recorded an increase of 0.4% while the unemployment rate remained at 4.2%.
Investors will await the development of negotiations between representatives from both countries, the US and China, in London today (Monday) to assess the direction of trade negotiations.
Judging by the price movement on the EUR/USD currency pair chart, the price approached the high of 1.15000 on Thursday, but returned to show a decline ahead of the NFP report.
In the last trading session of the week, the price ended below the 1.14000 level before rising slightly above it at the opening of the first session earlier this week.
The Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart was also tested which could provide an early signal for a change in price trend.
If the price is successful in continuing to rise higher, the resistance is at the 1.15000 level to be overcome.
If successful, the price will record a new 7-week high with the target shifting to around 1.16000.
However, if the price moves below the 1.14000 level, a bearish signal will push the price expectation to make a decline towards the 1.13000 zone.
In addition to observing the development of US-China negotiations, US inflation data will also be the main driver of price movement this week.
