EUR/USD Dilemma At $1.0700 Zone, Traders Be Careful!

<p>&nbsp;Through observation, the US dollar has managed to maintain its strengthening pattern for 8 consecutive weeks, becoming the longest period since 2014.</p><p><br /></p><p>If you look at last week's trading, the strengthening of the US dollar at the beginning was gloomy and more flat at the end of the week.</p><p><br /></p><p>Investors will be cautious this week by evaluating the United States (US) inflation data published along with several other important data before heading to next week's FOMC meeting.</p><p><br /></p><p>The Euro currency will be traded cautiously as investors await the outcome of the European Central Bank's (ECB) policy meeting on Thursday.</p><p><br /></p><p><br /></p><p><br /></p><p>The price chart of the EUR/USD currency pair is seen to end last week's trading flat in the 1.07000 zone after a decline at the beginning of the week from the 1.08000 level.</p><p><br /></p><p>If the US dollar continues to strengthen further this week, prices could likely continue the downward trend to lower levels.</p><p><br /></p><p><br /></p><p>However, the price started trading earlier this week above the 1.07000 zone and gave early signals for a trend change after starting above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart.</p><p><br /></p><p>If the price increase is displayed this week, the 1.08000 level will be reached again which has been a resistance in the previous week.</p><p><br /></p><p>Prices could continue to move higher after breaking through that resistance for a bullish move that reversed last week's pattern.</p><p><br /></p><p>However, if the downward pattern is maintained again this week, the price drop will be displayed again with the price about to break through the 1.07000 zone.</p><p><br /></p><p>The target for the downside is heading towards around 1.06000 to record another recent low.</p>