The US dollar failed to maintain its strength this week ahead of the release of the US NFP employment data report which saw a sharp fall in the monarch of the currency in the European and New York sessions yesterday.
Being a major factor depressing the US dollar was the decline in US 10-year treasury yields below the 1.70 level again. As of the Asian session on Friday morning, treasury yields hovered around the 1.67 level.
Market analysts see the situation as an investor reaction to US President Joe Biden’s announcement for his $ 2.3 trillion economic aid program that is seen to trigger a faster global economic recovery.
The depreciation of the US dollar has once again given room for other major currencies in the market to record gains again over the weekend.
Significantly seen on the chart of the EUR/USD currency pair yesterday when expectations for the price to continue the lower decline faltered. Instead the price rises to signal a change in the bullish trend.
Although the Euro currency is expected to move weaker following the pressure of viral contagion in Europe, the Euro has managed to trade higher against the US dollar.
The price has managed to jump from the support zone of 1.17200 and passed the barrier of Moving Average 50 (MA50) on the 1 hour time frame of the price movement.
The rise in prices continued until the New York session to the level of 1.17800 to test the SBR (support become resistance) zone continued in the Asian session this morning.
Price movements slowed back with most banks closing in conjunction with the Good Friday celebrations. Investors will be wary of market volatility ahead of the NFP data report.
If the price manages to break the SBR zone of 1.18000, the bullish trend is expected to continue until next week with the price increase will re -target the SBR zone of 1.19000.
However, if the price plunges back from the level of 1.17800, the price is seen to return to the support zone of 1.17200-1.17000.
Next, analysts will re -project the price decline up to the lower level around 1.16000 to resume the bearish trend since last week.
