After being patient and vigilant over the movement of the US dollar since early last week, investors finally got a clear signal with the strengthening of the US dollar following the NFP employment data report for a strong July.
The increase in employment in the United States (US) in July recorded a higher reading at 943,000 surpassing expectations to increase to 870,000. Meanwhile, the unemployment rate also fell sharply to 5.4% lower than expected at 5.7%, from 5.9% the previous month.
Indicators of a buoyant employment sector in the US had boosted the value of the US dollar before closing trade last week.
On the main chart the EUR/USD pair saw a decline in the New York session on Friday following the NFP report until the price closed trading to its latest 2 -week low.
The drop to the level around 1.17550 saw the price test the price support zone in last July's trading.
Continuing trading at the market opening earlier this week, the price was seen still trying to continue its decline even though the price movement was still slow at the beginning of the Asian session on Monday morning.
The price is expected to continue lower towards the support zone of 1.17000 after the last time the price tested the zone at the end of March before soaring until May trading.
The lower decline that continues past the support is likely to be expected to hit up to the latest low of this year around 1.16000.
However, in the event of a rebound, the 1.18000 level is seen to be the initial resistance before the price signals for a bullish movement again.
The continued rise will re -test the 1.19000 resistance zone which is still immune to break after being tested over the past week.
