Asian and European session trading on Tuesday saw the US dollar continue to move weakly falling to a 3 -week low influenced by Federal Reserve (Fed) Chairman Jerome Powell’s statement on central bank policy at the day -long Jackson Hole annual rally.
But in the New York session yesterday, the US dollar was seen to record a strengthening again. Is this a sign for a resurgence of the US dollar heading into the weekend?
Market analysts do not see the situation as unusual. However, it was just profit taking activity by investors at the close of trading for August.
The US dollar is still expected to move weak while investors will also be cautious ahead of the US NFP jobs data report on Friday.
Being the main focus chart, the EUR/USD pair was seen soaring until continuing into the European session yesterday to hit a 4 -week high reaching a high of around 1.18450.
But the start of the New York session saw the price plunge back to the 1.18000 level.
Market analysts see the 1.18000 level as an RBS (resistance become support) zone which is an important zone to support the rebound on the bullish trend movement.
The higher rise of the price is expected to pass the high reached yesterday before continuing the rise towards the latest resistance zone at 1.19000.
On the other hand if the RBS zone of 1.18000 fails to curb the lower fall of the price, the initial decline is seen to test the level around 1.17500 before reaching the support level of 1.17000.
European zone economic sector data will also be given attention by investors in the European session soon which could affect the movement of the Euro currency in the market.
Meanwhile in the New York session, the focus was on the US ADP NFP report for private sector jobs as well as the US manufacturing PMI data of the ISM survey which will drive the US dollar.
