The closer the release of the United States (US) NFP employment data report at the end of this week, the more risky and uncertain the price movement in the market.
As shown on the chart of the EUR/USD currency pair, the price is starting to show a change in the current movement pattern of yesterday's price.
If from last week until Wednesday, the pattern of price decline was maintained for 6 consecutive days, showing the continued strengthening of the US dollar.
However, on Thursday yesterday the price started to show a change in direction when it bounced back up.
As expected, the initial rise in price tested the resistance level at 1.08000 in the New York session, but continued in the Asian session this morning (Friday), the price flattened slowly below that level.
It became an early signal of a change in the bullish trend when yesterday's price increase began to cross the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart.
The direction of further price movement is seen to be driven by the release of the NFP report in the New York session later tonight.
If the US dollar weakens, the price will be higher than the 1.08000 level and show again the bullish movement that has stalled since last week.
The target is to reach back to the height of 1.10000 which was the resistance that the price failed to break last week.
On the other hand, if the US dollar strengthens in reaction to the published data, investors will see the price plunge more severely and further test the 1.070000 level.
If it breaks lower, an extended decline can be expected to reach around 1.06000.
