The US dollar is seen to still maintain its strengthening heading into the end of the week but momentum is seen to be weakening slightly.
This is as investors have begun to take precautionary measures to wait for the US (US) NFP employment data report to be published in the New York session tonight.
The December employment report will provide the latest signal to the Federal Reserve (Fed) in assessing the direction of their next monetary policy.
If observed on the EUR/USD currency pair chart yesterday, the price failed to continue the downward trend in previous days.
Instead, the price simply leveled off in the 1.03000 zone until the end of the New York session.
Although leveled off, the price movement still shows a bearish signal which is seen to remain below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.
Trading that continued early in the Asian session this morning (Friday) was still slow around 1.03000.
If the price continues the downward trend, the target is to head towards the support zone at 1.02000.
Reaching that area is also seen as recording a fresh 3-year low after breaking through last week's trading level.
However, if a strong surge occurs, the price bouncing up from the 1.03000 zone and breaking through the MA50 barrier will signal a bullish price movement.
A weaker US dollar could lift the price back up towards around 1.04000 or test the resistance level at the beginning of the week at 1.04300.
The focus is on the NFP jobs report to be published tonight for a clearer market trading direction.
