The US dollar started the new year's opening trading on a positive note last week, continuing its strengthening momentum at the close of 2023.
However, market movements were seen to start to level off towards the end of the week before the United States (US) NFP jobs data report published on Friday showed a jittery movement.
The US dollar strengthened as soon as the data was published with all components of the report rated positive for December, but the strengthening failed to continue.
A reversal later saw the US dollar weaken significantly before ending the last trading session for the week on a low note.
Examining the price chart of the EUR/USD currency pair on Friday, the price pressed low touching the 1.08800 level which is the lowest level of the price since trading last December 13.
Later, the price jumped 120 pips to the 1.10000 level before retreating to close the end of the session around 1.09400.
The slow price movement in the vicinity continued the opening of the trading session of the Asian session earlier this week.
The next market focus will be on the US inflation data that will be published this week for a clearer indication of the direction of the movement.
For the expectation of a price increase if it happens, the resistance is at the 1.10000 level to be tested again.
If successful, the increase is expected to continue towards the concentration zone around 1.10700 to 1.11000.
On the other hand, if the price decline occurs, the lowest level reached last week is likely to be exceeded for the bearish price trend to continue.
A lower decline is seen to be heading towards the concentration level of 1.08000 and the price reaction around that will be observed.
