The market movement at the opening of the early week yesterday was observed to be slightly slower after the vibrancy experienced by investors at the close of trading last week.
The United States (US) NFP employment data report published in the New York session last Friday has prompted a significant strengthening of the US dollar currency which recovered after initially weakening due to the impact of the FOMC meeting results.
Markets were surprised when the US job growth figure for January jumped to 517,000 from the previous month's 260,000 and well ahead of expectations for a decline to 193,000.
In fact, the unemployment rate, which was forecast to rise to 3.6% from 3.5% the previous month, has recorded a decline to 3.4%.
Tensions between Washington and Beijing that drive market risk sentiment are also seen supporting the US dollar to rise as a safe-haven currency.
Thus, it can be observed that the price movement on the chart of the EUR/USD currency pair continues the downward pattern at the opening of the market earlier this week.
Last Friday, the daily decline was recorded around 150 pips to the 1.08000 level and closed trading around that.
On Monday yesterday, the decline continued further towards the support level at 1.07000 before a slight flat continued into the Asian session this morning (Tuesday).
With the price movement below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart, it suggests the trend remains bearish and the price is likely to drop lower.
A drop if it crosses the 1.07000 level will lead to around 1.06000 and can reach up to the 1.05000 support zone if the US dollar remains strong.
On the other hand, for a bullish situation if it happens, the price will test the nearest resistance level at 1.08000 first before giving an indication of a trend change.
Breaking that level will push the price back to the 1.09000 zone and reach last week's high of 1.10000.
