EUR/USD Reached Tested Heights In Last July's Trading


 The US dollar is set to trade weaker this week following a mixed U.S. NFP employment data report published last weekend.

Although the average income and unemployment rate recorded a good reading, the figure for the increase in employment in the US for August fell much lower than expected.

This has put pressure on the US dollar to close last week’s trading at lower levels in addition to pressure on statements by Federal Reserve (Fed) Chairman Jerome Powell regarding central bank policy earlier.

Examining the price movement on the chart of the EUR/USD currency pair, the upside continued until last weekend testing the resistance zone at 1.19000 which was the target of analysts.

The zone was also a barrier to trading in late July and early August.

Still failing to break the resistance zone, the price moved backwards at the market opening earlier this week.

The decline is seen testing the Moving Average 50 (MA50) support level on the 1 -hour time frame of price movement on the EUR/USD chart with the expectation that the level will support the upside again.

The 1.19000 resistance zone is expected for a breakout price this week as the US dollar is expected to continue declining after a lackluster NFP jobs report.

The latest bullish target is at a high of 1.2000 to record the latest 3 -month high.

However, if the price plummets again, the support level for the price is seen at the level of 1.18000 in the latest RBS (resistance become support) zone.

The lower decline after the price showed a bearish trend change signal, will head back to the previous focus level around the 1.17000 level.