Confidence in the US economic recovery has boosted the US dollar this week to record its biggest weekly appreciation for a period of 3 months.
The dollar index nearly reached a 2-month high while ahead of the US NFP employment data report to be released at the start of the New York session today (Friday).
Looking at the price chart of the EUR / USD major currency pair yesterday, the price continued to push to the latest low above the support level at 1.20000.
The price movement remains below the Moving Average 50 (MA50) barrier level at the 1 hour movement which shows a clearer signal of the bearish trend.
After a successful break of the 1.20000 support zone, the price dropped around 40 pips to the level of 1.19600 before moving slowly and closing the New York session trading around it.
Price movements are still slow on the trade that continues into the Asian session this morning with the expectation that prices will continue to decline in the next session.
No change in current market sentiment supporting the strengthening of the US dollar will push the downside price likely to reach the 1.19000 level.
The level is in the RBS (resistance become support) zone which is the focus of end-of-2020 trading.
But the surge in prices could be due to investor reactions to the NFP employment report which is likely to cause the US dollar to depreciate again.
The price can jump again test the SBR level (support become resistance) 1.2000 and also the SBR level 1.20550.
Passing the rise above the MA50 barrier will be an early indication of a reversal of the bullish price trend.
