The European currency took advantage of the opportunity to record gains in early -week trading following the depreciation exhibited by the US dollar.
The positive increase in jobs in the United States (US) on the March NFP report was seen as failing to inject strength into the US dollar, instead pressure continued to face following the decline in US treasury yields.
It can be seen that the price movement on the chart of the EUR/USD currency pair yesterday is clearly signaling for a bullish trend after a significant surge in the New York session.
The price which initially made a decline to the level around 1.17400 has then rebounded above the Moving Average 50 (MA50) support level on the 1 hour time frame for the initial bullish signal.
Next, the bulls have managed to break the resistance at the SBR (support become resistance) zone of 1.18000 with the price almost reaching the high of 1.18200 before moving slowly at the end of the New York session and closing trading around it.
Price movements slowed in the Asian session today but analysts expect for prices to continue to rise higher.
It is possible that the price will decline slightly to the level of 1.18000 before making an increase heading up to the SBR zone of 1.19000 which was the focus before.
Investors should also be vigilant for a bearish reversal situation if the price moves back below the 1.18000-1.17800 zone.
The decline will return to the support zone 1.17200-1.17000 which was reached in the end-March trading.
