Although still moving steadily, the performance of the US dollar in trading yesterday Tuesday was seen to be slightly lower compared to the strengthening that was displayed at the beginning of the week.
The release of JOLTS employment data in the New York session yesterday also did not have a significant impact despite the reading coming in with strong numbers.
Thus, the pressure on other major currencies in the market has eased slightly, but investors will remain vigilant waiting for several important data to be published until the end of the week.
Ahead of the NFP report on Friday, the ADP employment data will be observed first in the New York session tonight.
If we examine the price movement on the EUR/USD currency pair chart yesterday, the price did not continue the downward pattern from last Monday.
On the contrary, there was a resurgence in prices above the 1.05000 level reaching a height of around 1.05300.
The price failed to break through the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart before leveling off at 1.05000 again until trading resumed in the Asian session this morning (Wednesday).
If the price drops below 1.05000, it is likely that the downward pattern from the beginning of the week will resume with the target of surpassing the level reached around 1.04600.
Next, the price that continues to decline is expected to test the focus level at 1.04000.
However, if the price shows a surge after leveling off at 1.05000, it will be a bullish signal for further price movement.
The increase will head towards 1.06000 to test the important resistance zone that has remained blocking price increases for the past few weeks.
