The issuance of US NFP data appears to feature a gloomy reading and a stretch from expectations that has completely dampened the USD’s desire to remain on record strengthening.
In addition, the decline in US 10 -year treasury yields, which experienced a drastic plunge to almost 1.30%, could also be the reason for the currency's slightly shaky throne.
However, investors also raised confidence that the Federal Reserve (Fed) will continue tightening policy immediately despite still being haunted by concerns about the Covid-19 case.
Looking at the price on the EUR/USD chart, the price was seen to have reacted with a jump at the beginning of the New York session on Friday before re -recording a climb at the end of the session.
This has also proved that the price movement is still not able to give a more significant price signal after being seen still moving horizontally for 3 consecutive days.
But the price seems to have returned to decline at the beginning of the Asian session today (Monday) and continued to hover in the SBR (support become resistance) zone of 1.13000.
In this case, of course, the SBR zone will also be the focus to be penetrated if the price movement succeeds in translating the uptrend of the deck due to the disappointing US NFP data than expected.
A clear uptrend will begin to be seen if the price reaches the resistance level at 1.14000 and subsequently investors will also expect the price to be able to climb higher.
But in a different tone, the support level around 1.12590 which saw it often support the rebound will be the earliest level to be reached if the price declines again.
Intihanya more severe decline will be observed in the support zone 1.12000 or can also be considered as the lowest level of 2021 to be tested and thus will signal a bearish trend.
