Today’s New York session (Friday) will certainly shake the market before this week’s trading curtain is anchored with the main focus directed at the U.S. NFP jobs data report for August.
The report is expected to decline after indications from the ADP employment report for the U.S. private sector published on Wednesday showed a weak reading. But it is not impossible for the NFP report to record a good reading.
The negative expectations have pushed the US dollar to continue to move weakly until Thursday yesterday in addition to pressure by Federal Reserve (Fed) Chairman Jerome Powell's dovish statement earlier on central bank policy.
Examining the price movement on the chart of the EUR/USD currency pair yesterday, the bullish trend of the price was seen to be successfully maintained until the end of the New York session with the US dollar continuing to depreciate.
Still minutes above the Moving Average 50 (MA50) support level on the 1 -hour time frame for the bullish signal pushed the price up towards the resistance zone of 1.19000 continuing in the Asian session trading this morning.
The zone will be price tested before clearer directions will be known after the NFP employment report is published.
The continued higher rise will target the latest high of around 1.20000 for the price to record the latest 3 -month high.
Yet if the 1.19000 resistance zone fails to be broken and the downtrend starts moving below the MA50 support level again, investors will see it as an early signal of a bearish trend change.
The decline will be supported by the 1.18000 level in the RBS (resistance become support) zone before the continued lower decline is expected to head back to the level around 1.17000.
The impact of the NFP report can drastically affect price movements over the weekend, so investors will be more vigilant in controlling trading risk.
