EUR/USD will plunge lower ahead of NFP report?

thecekodok

 The US dollar continued to strengthen until yesterday’s New York session following US treasury yields rising to a 1 -year high.


Meanwhile, major Wall Street market indices also showed a decline signaling market sentiment that risks risking demand for the US dollar as a safe-haven currency.


The focus was on Federal Reserve (Fed) Chairman Jerome Powell's speech yesterday but he was seen not giving any indication for a change in the central bank's current policy.


Thus, the market saw a continued strengthening of the US dollar against other major currencies until the weekend. However, be wary of the publication of U.S. NFP employment data reports.


On the price chart of the EUR/USD pair, the price hovering below the resistance of 1.20600 continued yesterday’s lower fall until it passed the weekly support level of 1.2000.


Price movement below the Moving Average 50 (MA50) barrier level on the 1 hour time frame still signals a bearish trend of the price.


The significant decline in the price displayed in the New York session yesterday has reached the RBS (resistance become support) zone of 1.19500 until continued trading in the Asian session on Friday.



With the bearish momentum, the price can reach up to the level of 1.19000 which will be the price support zone.


If the price rises again, the 1.2000 level will be a resistance for the price that forms a new SBR (support become resistance) zone.


A higher rise will test the MA50 resistance level before returning to yesterday's resistance zone around 1.20600-1.20900.


Investors will be wary of US dollar trading today especially at the start of the New York session with the expectation that a published US NFP report will have a major impact on the US dollar.