The US dollar was seen to perform well at the market opening earlier this week, but the relatively slow momentum is likely to be the effect of the US NFP employment data report published with mixed readings.
The increase in jobs in the US for May managed to beat expectations of a decline, but was lower than the figure recorded last April.
The unemployment rate and average income remained at previous levels compared to expectations for better figures for May.
Examining the price movement on the chart of the EUR/USD currency pair earlier this week, although there was a decline, the price was seen still moving in the horizontal zone.
The US dollar is still under pressure despite a still -slow momentum, while investors are wary of the Euro ahead of the outcome of the European central bank’s policy meeting this week.
After several indicators presented earlier, the market is waiting to see whether the European Central Bank (ECB) will actually embark on its interest rate hike for the first time in more than a decade.
If true, it is likely that the Euro will show a strengthening pattern and push up prices on the EUR/USD chart.
Prices moving above the 1.07000 zone are expected to test the resistance at the 1.08000 zone which failed to pass last week.
The continued higher rise will record the latest 7 -week high with the next target being at the 1.09000 zone.
Yet if the US dollar is more dominant this week, the price could be pressed lower to break last week’s support level at around 1.06400.
Further price declines will also test the RBS (resistance become support) 1.06000 zone for investors to assess the price reaction in that zone before determining the direction of further price movements.
