The movement of the US dollar in the market is seen to be mixed as it approaches this week's highlight event which is the release of the US NFP employment data report in the New York session soon.
After hawkish comments by the Federal Reserve (Fed) regarding policy tightening measures, the US dollar has rebounded again. However, the momentum of the strengthening was not seen as clearly continuing yesterday as investors are likely to take precautionary measures to await the results of the NFP employment report.
There were some currencies that managed to move strong against the US dollar, but some remained struggling after the US dollar strengthened again on Wednesday.
Like the Euro, the US dollar still managed to dominate to depress prices rather than make a rebound.
On the price chart of the EUR/USD pair, the price is still showing bearish movement when yesterday’s weak rise merely tested the Moving Average 50 (MA50) barrier on the 1 -hour time frame before flattening around 1.18300 until the end of the New York session.
After a few days the price tested the resistance zone of 1.19000 but failed to break it, the decline began to be seen and is expected to head to the level of 1.18000 again.
If the NFP jobs report records a disappointing reading and the price rebounds again on the EUR/USD chart, the resistance zone at 1.19000 will be tested again.
The strong momentum of the price pushed the price past the resistance to record the latest 5 -week high with the next target towards the 1.20000 zone.
On the other hand if the employment data in July is encouraging, the strengthening of the US dollar is expected to plunge the price lower past the 1.18000 level and test the support zone of previous weeks around 1.17700-1.17500.
The continued lower decline is seen to hit back to the key support zone at 1.17000.
