EUR/USD Analysis – Last Week's Price Bounce Just Temporary?

<p>&nbsp;The change in price direction on the chart of the EUR/USD currency pair made investors cautious during the closing trade for the month of September, last week.</p><p><br /></p><p>Besides the focus of the market being focused on the 'government shutdown' issue in the United States (US), economic data is still being watched.</p><p><br /></p><p>PCE inflation data posted a lower-than-expected reading to remain, while US consumer confidence data rose better.</p><p><br /></p><p>This week, it is certain that the NFP employment data report at the end of the week will be the main focus after the Federal Reserve (Fed) has signaled to raise interest rates again at the latest FOMC meeting.</p><p><br /></p><p>Looking at the EUR/USD chart, the 1.05000 level became price support when the previous downtrend stopped around that.</p><p><br /></p><p>After that, a rebound occurred last Thursday until the 1.06000 concentration zone was tested on Friday, but the price failed to hold above it.</p><p><br /></p><p>The decline occurred again in the last session of the week below the 1.06000 zone before closing trading around 1.05700.</p><p><br /></p><p><br /></p><p>The price movement is still above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart which remains a bullish movement signal.</p><p><br /></p><p>If the price bounces back up, the 1.06000 zone will be tested to be passed.</p><p><br /></p><p>The rise will continue to overcome last week's high with the target to reach the concentration level at 1.07000.</p><p><br /></p><p>On the other hand, if the price breaks below the MA50 support with a strengthening return displayed by the US dollar, investors will again see the decline repeat this week.</p><p><br /></p><p>Support at 1.05000 becomes a critical zone that will be tested and the price reaction around that will be observed for further price movement indicators.</p>