Ending trading for June, the US dollar is seen to have recorded its best monthly performance since November 2016 with a surge in value exhibited.
The US dollar continued to show a strengthening in Wednesday’s trading yesterday which was the close for June while the US NFP jobs report will be the focus tomorrow.
Discussions for policy tightening by the Federal Reserve (Fed), risk sentiment driven by fears of a virus spread as well as reports of rising ADP employment data for the US private sector, were among the factors supporting the strengthening US dollar in the market.
Other major currencies are seen failing to curb the dominance of the US dollar especially the Euro which has continued to see gloomy movements since last week again.
On the chart of the EUR/USD currency pair, the price clearly showed a decline from the level of 1.19000 to record a weekly low.
True to the initial expectations of the decline, the price has traversed to the support level last week around 1.18500 at the end of the New York session trading.
Ahead of the NFP report on Friday, the price is expected to continue declining to the support zone at 1.18000 thus recording the latest 12 -week low.
If the price returns to rise, the Moving Average 50 (MA50) barrier in the 1 hour time frame of the price movement will signal a change in trend.
A rise above the 1.19000 level again will push the expectation for the price to continue its rise to the focus resistance zone at 1.20000.
