The US dollar managed to maintain its strength on Wednesday trading yesterday as the pressure on the downgrade of the credit rating of the United States (US) was reduced.
This was driven by the release of the US ADP employment data report in yesterday's New York session with a stronger reading than forecast for July.
This situation gives a positive initial impression of the NFP employment report that will be published on Friday.
While the New York session tonight will feature US jobless benefit claims data and also the ISM survey for the US service sector.
The strengthening of the US dollar continues to undercut other major currencies in the market as trading heads towards the end of the week including the Euro.
The euro, which was seen recovering slightly at the opening of the Asian session yesterday, failed to curb the demand for the US dollar so that its value fell to the lowest level in the latest 4 weeks.
Examining the price chart of the EUR/USD currency pair, the price that failed to hold above the 1.1000 level has moved lower past last week's level, reaching around 1.09200.
The price then rebounded slightly and hovered slowly above that level continuing the opening trade of the Asian session this morning (Thursday).
As expected, the 1.09000 zone becomes an important focus for prices that will give a reaction and indication for further movement.
If the 1.09000 zone is successfully breached after this with a continued downtrend, the price will head towards a new low target around 1.08000.
However, if there is a change of direction in the price at the end of this week, the increase is seen to retest the 1.10000 resistance.
Successfully breaking through, would expect the rally to continue and break the highs at the beginning of the week before the target shifts at the highs reached last week around 1.11500.
