The declines in the gains coincided with the test of a technical resistance level as well as the U.S. dollar rising sharply on the back of strong economic data and investors looking to next week’s payroll report.

Economic data last week was relatively subdued. Data from the U.S. was somewhat mixed.

The GDP revision showed that the U.S. economy advanced 4.2% in the second quarter. This was higher than the initial estimates of 4.1%. Personal income and personal spending were also seen rising steadily for July.

However, on the flipside, the U.S. housing market was showing signs of easing. This comes amid higher mortgage rates as the Federal Reserve continues to hike interest rates.

From the Eurozone, the German inflation report put a dampner. Last week also saw rising tensions between the U.S. and EU in regards to the trade tussle.

EU’s Juncker noted that the region would impose tit-for-tat response in trade tariffs.

From a technical perspective, the euro currency is expected to retrace the gains down to 1.1540 level of support which could be tested firmly.

A bounce off this level could potentially form a head and shoulders pattern, especially if the EURUSD manages to stall the gains from the rebound at 1.1626.