After the positive reaction to the latest US inflation data published on Tuesday, the strengthening of the US dollar failed to continue at the end of last week.
This is due to the issue of the removal of Federal Reserve (Fed) Chairman Jerome Powell and the development of Donald Trump's tariffs once again becoming the focus of the market.
The Euro currency is seen recovering slightly after the pressure from the US dollar has eased again but further strengthening is expected to be limited.
This is due to pressure on the European economy when President Trump insisted on a minimum tariff of between 15% and 20% to be imposed on all imported goods from the bloc.
Investors also saw pressure on the Euro at the beginning of the week ahead of the decision of the European Central Bank (ECB) policy meeting this Thursday.
Observing the movement on the EUR/USD currency pair chart, the price was pressured to fall below the 1.16000 level zone after the data was published last week.
However, with the price turmoil that occurred, the momentum of the US dollar's strengthening was seen to be affected and the downward pattern was not successfully continued.
The price rose again on Friday, reaching a level around 1.16700 before closing the last trading session of the week slightly lower.
Slow price movement in the Asian session this morning (Monday) saw the price hovering above the 1.16000 zone while following the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
Initial expectations for the direction of further price movement will be determined based on the price reaction to the line.
If the price makes a rebound, the level reached last Friday will be attempted to be overcome before continuing to rise to test the 1.17000 zone.
Successfully crossing this important zone will show a clearer signal for the price to move in a bullish trend.
On the other hand, if the price plunges below 1.16000, it is likely that last week's downward pattern will be resumed.
The target shifts to the 1.15000 zone to be aimed at a price decline that continues lower after this.
