The US dollar is expected to continue to move weaker this week following the US NFP employment data report for April published with disappointing readings.
Deviating from expectations to rise close to 1 million, the increase in US jobs instead only recorded a figure of 266,000 lower than 770,000 in the previous month's reading. In fact, the unemployment rate has also increased.
On the price chart of the EUR/USD pair, the price jumped from the SBR (support become resistance) zone of 1.20600 to the resistance zone of 1.21700 after the NFP report was published.
In addition to the depreciation of the US dollar, there are also factors that support the Euro currency to push higher gains on the EUR/USD chart.
European Commission President Ursula von der Leyen announced that the European Union (EU) has entered into a joint agreement with BioNTech/Pfizer for an additional 1.8 billion doses of Coronavirus vaccine for 2021 to 2023.
Starting trading this week, the price slightly rose to the level of 1.21800 at the beginning of the Asian session for a record 11 -week high before slipping back to the level of 1.21500.
With the current situation, investors will expect a higher price rise on the EUR/USD chart for this week with expectations of the US dollar continuing to weaken.
The next price increase will be to the high level of 1.22500 and also 1.23000. A rise to that level will record the latest 18 -week high.
However, if the price declines again, the RBS (resistance become support) zone 1.20900-1.20600 will return to focus.
The lower decline will be to the support level of 1.20000 which has supported the price to rise again in last week's trading.
