If one observes the price movement on the chart of the EUR/USD currency pair yesterday (Wednesday), the price still seems to have failed to break the resistance zone of 1.22500.
Expectations for prices to continue rising slipped as the US dollar was seen moving stronger in the European session yesterday before starting to weaken again in the New York session.
A decline below the Moving Average 50 (MA50) support level has then retested the RBS (resistance become support) zone 1.21800-1.21500.
As in previous weeks, the zone managed to re-support for prices to make the rise rather than fall lower.
The gloomy performance of the Wall Street market was seen pushing up the value of the US dollar as a safe-haven currency, but weak US treasury yields hovering around the 1.60% level still put pressure on the US dollar.
Investors however remain wary of market movements especially for the US dollar ahead of the US NFP jobs report on Friday.
Technically, investors will focus on the 2 main zones on the EUR/USD chart.
For a price increase, the resistance zone of 1.22500 will be tested again. If this zone is successfully broken, investors are optimistic for the price to continue the previous bullish trend with the expectation of heading towards the 1.23000 focus level.
On the other hand, for the current bearish situation of the price, the RBS zone 1.21800-1.21500 is expected to continue to support the price from falling lower.
If the zone continues to be broken, the price will decline up to the RBS zone 1.20900-1.20600 and investors are ready to receive the bullish trend signal that the price is over.
