The US economic data released on Friday pushed the US dollar lower in the final trading sessions of last week.
The US dollar failed to maintain the recovery shown the previous day when the latest US producer inflation data came in higher than expected.
The market is currently still placing high expectations for an interest rate cut by the Federal Reserve (Fed) at its September meeting after assessing the indications in the latest data.
Observing the movement on the EUR/USD currency pair chart, the price has shown a rebound at the end of last week, returning to the important zone of 1.17000.
Closing in that zone, the price is still hovering slowly around it at the opening of the early session of this week.
However, the price returning above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart provides an early signal for the bullish movement to resume.
If the price manages to rise above last week's high of around 1.17300, higher levels will be recorded with a target towards the 1.18000 zone.
The zone is a resistance that was tested by the price in June trading when the price failed to continue its rise higher.
Meanwhile, if the price fails to remain above the 1.17000 zone, it will trigger a bearish trend signal for the price this week.
A decline could re-reach last week's support level at 1.16000 and risk falling lower if the US dollar is again traded strongly in the market.
