The US NFP employment data report for February published last Friday showed an encouraging reading as job growth doubled while the unemployment rate also recorded a decline.
But the market reaction following the important report did not show a significant impact on the US dollar's trade which returned to a slow move until trading resumed at the opening earlier this week.
The focus shifted to the development of the $ 1.9 trillion stimulus package that the U.S. Senate had approved despite a number of changes being introduced.
Examining the price movement on the chart of the major currency pair EUR/USD, the price has made a decline to a 4 -month low on Friday reaching the support zone of 1.19000.
Investors are still evaluating price movements in a bearish trend below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame with lower downside expectations recorded this week.
The Asian session today saw a slow hover above the 1.19000 level again testing the support zone.
The continued decline beyond the zone is likely to head to the 1.18000 level as the latest lows target.
If the price manages to jump back past the MA50 barrier, the resistance level of 1.2000 in the SBR zone (support become resistance) will be tested.
Higher gains will head back to last week’s resistance zone around 1.20600-1.20900.
For the Euro, the outcome of the European central bank’s policy meeting will be the main focus in addition to other European economic data throughout the week.
