The US dollar showed a strengthening trade at the beginning of last week, but at the end of the week the movement started to level off.
Investors are still cautious in keeping an eye on the latest indicators leading to the FOMC meeting in early February with some economic data from the United States (US) this week including the US GDP data for the third quarter of 2024 and the PCE price index.
The Euro will be driven by the movement of the US dollar this week, but investors will focus on the outcome of the European central bank (ECB) policy meeting.
If you look at the chart of the EUR/USD currency pair, the price experienced a decline at the beginning of last week but then leveled off until the end of the week.
The lowest level reached by the price is at 1.08500 which is the support level during the current price.
The decline did not extend at the end of the week instead the price moved back above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart signaling a bullish move for the week.
The price movement hovering in the 1.09000 zone shows a slow increase in the Asian session this morning (Monday) and if it continues successfully, the target is for the price to reach the 1.10000 level again.
That level became a strong resistance to be broken in the early trading last January.
Meanwhile, if there is a further decline from the 1.09000 zone past the MA50 support, it will be a bearish signal for the price to go lower than last week.
A decline past the 1.08500 level last week would expect the price to head towards the 1.08000 concentration zone as well while making new lows.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
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