The US dollar is seen to continue to move weaker after the US manufacturing PMI data of the ISM survey published in the New York session yesterday was less encouraging by displaying declining figures for the second month in a row.
Indications of slowing US economic growth added pressure on the US dollar as investors await the US NFP jobs data report over the weekend.
In addition, the US 10 -year treasury yield also fell below the 1.20% level which is seen to also push the weak movement of the US dollar this week.
Price movements on the major charts were still slow at the beginning of the week, however some major currencies have already taken the opportunity to continue their early consolidation.
On the main chart of the EUR/USD pair, it can be seen that the price went up yesterday but failed to overcome last Friday's high after the price recorded a 1 -month high above the 1.19000 level.
For the Euro currency, economic data published during the European session was seen to have little impact on price movements with no significant change in the difference in reading figures.
Failing to touch the resistance level of 1.19000 yesterday saw the price decline again and move below the Moving Average 50 (MA50) resistance level on the 1 hour time frame.
The price reaction in the zone will be given attention by investors which can be an important signal for further price movements.
If the price manages to break the resistance zone, a higher rise will be expected for the price to head to the level around 1.19700 before testing the 1.20000 focus level.
On the other hand if the US dollar manages to strengthen and re -press the falling price lower, the 1.18000 level is seen to be the initial focus for the price decline.
The continued decline will test the support zone a few weeks earlier around 1.17500 before heading to the main support level at 1.17000.
