The US dollar traded mixed on Thursday yesterday as the market grew cautious ahead of the release of the United States (US) NFP jobs data report today.
The data, which is an important indicator for the Federal Reserve (Fed) in setting monetary policy, will have a big impact on the movement of the US dollar in the New York session later.
The strengthening of the US dollar was previously supported by the ADP employment data, but the momentum started to loosen in addition to the ISM survey data of the US service sector published yesterday with a 'red' figure.
Therefore, on the price chart of the EUR/USD currency pair see a slightly different pattern.
If last Wednesday the price showed a downward pattern, last Thursday the price movement was seen to be more horizontal above the support level of 1.09200.
There was a rebound towards the end of the New York session, but the price increase was blocked by the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart.
If the price increase continues, the price is seen to head towards the 1.1000 level which is seen as an important resistance to test.
Passing the following resistance can trigger expectations for a change in the bullish trend starting with an initial rise that will try to overcome the height reached at the beginning of the week around 1.10400.
However if the US dollar strengthens after the NFP report, the price could plunge below the 1.09000 level.
A further drop in price could reach 1.08000 to record a fresh 7-week low.
