After a weak move earlier in the week, the US dollar returned to ‘showing fangs’ again in Tuesday’s trade with a strengthening on display.
Examining the United States (US) stock market, the sale of technology stocks became the focus and increased market risky sentiment while providing an advantage for the safe-haven currency of the US dollar.
In addition, there are reports that the possibility of an increase in interest rates in the US is also a factor supporting the major currency following a statement by US Treasury Secretary Janet Yellen giving a view for policy tightening after a relatively long period of easing.
However, the US NFP employment data report on Thursday will provide clues for the central bank's decision in setting policy.
The re -strengthening of the US dollar is seen to have put pressure on other major currencies in the market including the Euro.
The price movement on the chart of the EUR/USD currency pair declined again on Tuesday after starting trading earlier in the week with a rise to the SBR (support become resistance) zone of 1.20600.
Yesterday’s trading saw the price return making a decline of around 60 pips to the support level of 1.2000 as expected in the previous analysis.
The price rebounded from that level but failed to pass the Moving Average 50 (MA50) barrier within the 1 hour time frame of the price movement.
If the price continues to move below the MA50 barrier, the price is expected to continue falling below the support level of 1.2000 to move to the support zone of 1.19000.
On the other hand if the price manages to rebound, the SBR zone 1.20600-1.20900 will return to be for price testing.
A higher rise beyond the zone will further target the resistance level at 1.21500 reached at the end of April.
