With a few weeks left before the United States President's (US) election, investors began to be wary of US dollar trade following Donald Trump's health developments after being confirmed positive for Covid-19 last week.
On the other hand, the US NFP jobs data report published last Friday was not very encouraging with somewhat mixed reading.
Although unemployment rates have shown a decline in the US, average hourly wages have fallen in proportion to what the market has seen increases.
Job gains were also 661,000 lower than the estimated decline to 900.00 for September.
The impression of the depreciation of the US dollar can be seen at the start of trading this week in the Asian session.
On the price chart for the EUR / USD currency pair, prices have exhibited increases as well as the trading session started with an increase of about 30 pips by 11am local time.
The price is seen testing the Moving Average 50 (MA50) barrier on the frame of the 1 hour price movement to provide clearer direction of movement.
The continued higher rise is expected to be to the preceding pedestal zone around below level 1.18000. This week's higher bulls could potentially head back to the 1.19000 face.
However, if the price is pushed lower again, it is possible that with the initial confirmation of the US dollar, the price will overturn the 1.17000 level and also the support level last week.
A lower decline is seen to make the support zone 1.16100 the next target destination.
Also monitor economic developments in Europe and also remarks by the President of the ECB, Christine Lagarde for clues to the direction of movement for the Euro currency.
