Market movements at the beginning of the week were slow and saw the US dollar trade somewhat mixed, but has yet to show signs of weakening again.
The strengthening was successfully displayed by the US dollar until the end of last week when the market focus was directed to the report of the United States (US) NFP employment data.
All three components of the report were positive with job gains in November increasing by 199,000 beating expectations of 184,000 and higher than in October at 150,000.
Meanwhile, average hourly earnings rose 0.4% compared to the previous month at 0.2%, and also beat forecasts of 0.3%.
The unemployment rate significantly fell to 3.7% from the 3.9% level which is expected to remain for the month of November.
Investors will await the results of the FOMC meeting early Thursday morning, but first the focus will be on the US inflation data in the New York session tonight.
If observed on the chart of the EUR/USD currency pair, the price that failed to rise past the 1.08000 level last week was pushed down again influenced by the published NFP data report.
The price dropped to weekly lows last Friday reaching around 1.07240 before rebounding slightly to close the last session trading around 1.07600.
The continuation of the price movement at the opening of yesterday's early week was seen to flatten below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart, signaling that price gains are unlikely to continue.
A further decline in price if it continues today would expect to break past last week's levels before the price reaches 1.07000.
If the penetration is lower, the price will continue the bearish trend with the target heading towards around 1.06000.
On the other hand, if the price manages to show an increase again, the nearest resistance at 1.08000 will once again be tested.
Next, a successful continued increase will signal a change in the price trend to occur before the price target will be directed to the previous concentrations such as the 1.09000 level or up to 1.10000.
