At the end of last week, the focus was on the US (US) NFP employment data report published in the last market session.
The report published for January was quite mixed, with a slow increase in jobs, but average hourly earnings and the unemployment rate showed good readings.
The US dollar weakened in the early New York session when the report was published, but returned to show some strength towards the close of the session.
Examining the movement on the EUR/USD currency pair chart, the price tested the resistance at 1.04000 before making a 100 pip drop near 1.03000.
The price opened slightly lower below 1.03000 in the Asian session this morning (Monday) before slowly rising above that level.
The price movement remaining below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe of the EUR/USD chart indicates a bearish signal for further declines this week.
However, the market will be cautious ahead of new clues from the US inflation report that will drive the direction of the US dollar.
If the price continues to slide lower from the 1.03000 zone, the focus will be on the support zone tested last January which is around 1.02000.
If the price drops lower beyond it, the price will record a new low for the 3-year trading period.
However, if the price rises from the 1.03000 zone, the resistance at 1.04000 will be tested again like last Friday.
Breaking through this resistance will signal a change in the price trend and push the price higher targeting the 1.05000 zone again.
