The closer the U.S. NFP employment data report gets to release this weekend, the more the U.S. dollar displays its strengthening.
Continued risk signals on market sentiment as the stock market showed a decline and bond yields rose.
The US dollar as a safe-haven currency continued to strengthen its position in risk-off market sentiment as US manufacturing survey data readings published in the New York session yesterday recorded rising readings.
This has made the US dollar manage to strengthen against most other major currencies in the market including the Euro.
The euro failed to stand out despite expectations for the European central bank (ECB) to implement an interest rate hike that could support the strengthening of the European currency.
On the price chart of the EUR/USD pair, the price has displayed a daily decline of around 100 pips with the significant strengthening of the US dollar continuing to sink the Euro.
Investors saw clearer signals for the price bullish trend after the price remained moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
The decline to the lowest level for the week yesterday had hit around the 1.06300 level before the price flattened around that until the end of the New York session.
A lower decline is expected by the market today for the price to test the RBS (resistance become support) zone at 1.06000.
If the price manages to continue the decline beyond that zone, the price is likely to return to the previous focus zones around 1.05000 or up to 1.04000.
On the other hand if the price starts to change direction and make a rise, the resistance at 1.07000 will be tested and passing the MA50 barrier will signal for the price to move in a bullish trend again.
A higher rise in the price is seen to re -target at 1.08000 to test the resistance zone.
