The United States (US) NFP employment data report that was published last Friday has had an interesting and somewhat surprising price action effect on investors.
Looking at the report, employment growth in September was much higher than forecast at 336,000 from 171,000.
The average hourly opinion remained at 0.2% while the unemployment rate remained at 3.8% compared to forecasts for a drop to 3.7%.
The US dollar strengthened as soon as the report was published, but fell again until trading closed in the last session.
The price chart of the EUR/USD currency pair shows the volatile movement of the session.
Initially the price plunged from the level around 1.05600 to below the level of 1.05000 when the NFP data was published at the beginning of the New York session.
However, the price bounced back above 1.05000 to touch the 1.06000 highs and a slowdown around that closed the week's trade.
Investors saw the difference in price opening (gap) earlier this week following the escalation of the Palestinian-Israeli war conflict over the weekend.
The price opened around the 1.05500 level but still remains above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart.
If the price increase continues, the 1.06000 level will be tested again as resistance to be broken.
If successful, the increase will continue towards the target of 1.07000 while displaying a bullish trend movement.
However, if the price falls again, the support level at 1.0500 will again be the focus to be tested.
If it breaks through lower, the previous week's support level around 1.04500 is seen to be hit again.
