True to the forecasts of market analysts, the US dollar resumed its downward trend at the market opening in early September yesterday.
The United States (US) manufacturing sector survey data published in the New York session yesterday was seen to record a good reading. However, it failed to contain the sharp decline in the value of the US dollar after the previously published ADP employment report for the US private sector posted a weaker -than -expected reading.
Market analysts are confident a dovish statement by Federal Reserve (Fed) Chairman Jerome Powell last week will drag the US dollar down even more while the focus is now on the US NFP jobs report on Friday which is expected to decline after hints from yesterday’s ADP jobs report.
On the price chart of the EUR/USD pair, the price is seen resuming its rebound in Wednesday's trading yesterday from the support level of 1.18000.
Even the gains on display surpassed last Tuesday’s high to reach the latest 4 -week high of 1.18570 in yesterday’s New York session.
The bullish movement signal of the price continued after meeting the analyst’s forecast for the price to rise again from the level of 1.18000 and move above the support level of Moving Average 50 (MA50) on the 1 -hour time frame on the EUR/USD chart.
The next higher price increase is expected to head to the level of 1.19000 which is the resistance zone tested in early August trading.
Overcoming the resistance will push the price to its latest high for 3 months.
However, if the price decline occurs again, the level of 1.18000 will be refocused as an important level that supports the price like yesterday's trading situation.
If the decline fails to be contained, passing that level will give an early signal for a change in the bearish trend.
The previous focus level such as at the 1.17500 zone and the 1.17000 support level will return to the price attraction zone.
