What happened to the US dollar when the United States (US) NFP employment data report was published last Friday?
At the start of the data release, the US dollar strengthened first with a reading of job growth in June that was seen as better than the forecast figure.
However, upon examination, the data figures for the previous May were updated to decrease with a significant difference.
Meanwhile, the average income and unemployment rate for June also recorded declining readings.
After the market digested the report for a while, the US dollar again moved weakly until the close of trading in the last session of the week.
If observed on the chart of the EUR/USD currency pair, the price was initially pushed down to the 1.08000 level before bouncing back up.
The high level reached is around 1.08400 for a 3-week trading high.
There was a difference in the price opening distance on the EUR/USD chart at the beginning of the week yesterday as a result of European political developments affecting the Euro currency.
Opened around the 1.08000 level, the price shows an increase again to the height level when the NFP is at the resistance level of 1.08400.
The price retreated slightly in the New York session yesterday from that height following the trading of the US dollar which returned to stability.
Slow price action in the Asian session this morning (Tuesday) is hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart as investors assess the direction of price action for their technical analysis.
If the rising pattern continues successfully, the bullish movement of the price is expected to pass the resistance of 1.08400 before recording the latest high level again this week.
The target is to head towards the concentration zone at 1.09000.
However, if the price drops again, the 1.08000 zone is still seen as a focus for the price to approach.
A lower drop below it will give a bearish indicator with the expectation that the price may fall back to around 1.07000.
