Trading for the market opening earlier in the week saw the US dollar again show a rebound after losses suffered after the US NFP jobs data report published last Friday recorded a declining gain for August.
Analysts saw slowing global growth factors supporting the safe-haven currency movement earlier in the week, but investors doubted the strengthening US dollar would continue with real trading expectations yet to begin as the US market closed in conjunction with Labor Day.
The disappointing NFP employment report coupled with the pressure of a dovish -toned statement by Federal Reserve (Fed) Chairman Jerome Powell on monetary policy gave an early indication of the outcome of the September edition of the FOMC meeting.
If you look at the price movement on the chart of the EUR/USD currency pair yesterday, the price has slipped lower than the price movement on last Friday which tested the resistance zone of 1.19000.
The initial signal of bearish movement of the price is seen after the price that failed to break the resistance zone of 1.19000 started moving again below the support level of Moving Average 50 (MA50) on the 1 hour time frame.
But after closing the New York session with a horizontal movement, the price started to show gains in the Asian session this morning (Tuesday) re -passing the MA50 barrier.
The rally is expected to continue to retest the 1.19000 resistance to record the latest highs this week.
Passing the resistance zone will push the price up towards the new target at the resistance of 1.20000.
The 1.20000 level was previously the support level in May trading before the price plunged below it last June.
For a possible bearish situation, the price will return to the support level of 1.18000 in the RBS zone (resistance become support).
The continued lower decline will test the previous focus level at 1.17500 and also the 1.17000 support.
