Be careful! EUR/USD Declining Momentum Slowing Down - Kakiforex.com - Financial Market Media No. 1 in the World Be careful! EUR/USD Declining Momentum Slowing Down Be careful! EUR/USD Declining Momentum Slowing Down
InstaForex

May 6, 2021

Be careful! EUR/USD Declining Momentum Slowing Down

 The US dollar is moving more slowly after strengthening to a week -long high ahead of the US NFP jobs data report later this week.


Market sentiment is seen to remain risky with the Wall Street stock market closing mixed. The Dow Jones index closed at its latest record high, while the Nasdaq slumped with the fall in tech stocks.


The 10-year US treasury yield also declined, also affecting the devaluation of the US dollar.


US services PMI survey data published in the New York session yesterday also failed to support the momentum of the strengthening US dollar earlier.


The Euro currency is seen failing to capitalize on the situation to strengthen even as the US dollar has started to move slowly due to investor vigilance.


The price movement on the chart of the EUR/USD currency pair is still showing a downward trend since last weekend.


However, yesterday's bearish momentum slowed down and the price flattened in the support zone of 1.2000.



Analysts expect the price to continue to decline as long as it moves below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame of the price movement on the EUR/USD chart.


The lower bearish target is seen at the support zone of 1.19000 to record the latest 3 -week low.


On the other hand if a bullish situation occurs and the price moves past the MA50 barrier, investors will be prepared for a bullish trend change.


The initial rise will be towards the SBR (support become resistance) zone of 1.20600-1.20900 which failed to be broken when tested earlier this week.


Next, the resistance level of 1.21500 reached last week will be the focus destination on the continued rise.