While the Pound suffered a significant decline after the monetary policy meeting, the US dollar managed to maintain its strengthening towards the end of the week after being supported by the signal of policy tightening by the Federal Reserve (Fed) following the end of the FOMC meeting.
The speech by the President of the European Central Bank (ECB) Christine Lagarde in an economic conference event yesterday was seen to be still focused on European economic concerns and continued to push the Euro currency to move weakly.
The US dollar continues to appreciate, but investors are likely to be more cautious awaiting the release of the United States (US) NFP employment data report today.
On the price chart of the EUR/USD currency pair, investors have seen the price drop to a 2-week low with a daily drop of around 100 pips recorded on Thursday yesterday.
Continuing the downward momentum after the FOMC meeting, the price hovering slowly in the Asian session around 0.98300 has continued to decline reaching around 0.97300.
A slight rebound was seen in the New York session, but did not cross the 0.98000 level with the expected price tendency to continue the decline lower.
Price movement below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart still signals a bearish trend.
Expectations for a lower decline are seen to test the concentration zone at 0.97000 before a further decline that continues if the US dollar remains strong could reach up to 0.95500.
On the other hand, if there is a price rebound past the 0.98000 resistance and the MA50 barrier, a higher rise can be expected towards the 0.99000 zone again with a trend change signal to be evaluated by investors.
The direction of further price movement is expected to be clearer to observe after the US NFP employment data report is published shortly.
