The release of the United States (US) NFP employment data report last Friday saw a significant strengthening of the US dollar currency for the last trading session of the week.
US job growth in July came in higher than expected, the highest since last February's reading.
While the US unemployment rate recorded a decrease and the average income increased above the expected decrease and the June reading.
Examining the price movement on the chart of the EUR/USD currency pair, the price has exhibited a plunge of almost 100 pips when the NFP data was published.
The price which initially hovered at the resistance level of 1.02400 after the previous day's price increase got stuck around that, the price then plunged to retest the support level at 1.01600.
Still managing to contain the price fall, the 1.01600 level once again rebounded and leveled above that level until the week's trading ended.
Investors assessed the signal of a bearish trend change after the price started to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart, but in the opening Asian session at the beginning of the week the price was still hovering around 1.01600.
If the price starts to show signs of continuing to decline, the price that falls below the support level of 1.01600 is expected to go to the level of 1.01000 in the RBS (resistance become support) zone.
On the other hand, if the price shows a rebound in the trading earlier this week, the resistance at 1.02400 will be tested again before the price resumes its rise to the 1.03000 level.
Continuing the bullish trend and breaking through those resistances will record the latest 5-week high with a target to reach the 1.04000 level.
