The US dollar maintained its strength at the start of the week after recovering at the close of trade last week on the impact of the published US NFP jobs report.
In yesterday's New York session, the US service PMI data from the ISM survey also recorded a reading that increased better than the forecast for January, showing that the US economy is still growing well in early 2024.
Therefore, the projection of the interest rate cut by the Federal Reserve (Fed) is getting lower and again gives an advantage to the US dollar currency in the market.
As can be seen on the chart of the EUR/USD currency pair yesterday, the price continued to plunge to the latest 9-week low.
After the price plunge last Friday when the NFP data reacted, the price fell below the 1.08000 zone.
The decline continued yesterday until the price reached around 1.07230 with the movement in a bearish trend seeing the price still below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart.
A lower decline is expected to continue after this to test the support level of 1.07000.
Hitting that level would make the price record a new low for the 12-week trading period.
However, if the price shows an increase again, the 1.08000 zone is seen to be tested as the nearest resistance which was previously the focus of the price.
Crossing the zone will signal a change in trend again before the rise continues towards the 1.09000 zone.
