The US dollar appears to have failed to maintain its strength despite the publication of the US ADP NFP jobs report data published on an encouraging reading in the New York session yesterday.
However, the US NFP ADP reading, which recorded a positive reading, will give investors a glimpse into the NFP employment report data on Friday with an increasing reading.
The strengthening shown by the USD yesterday does not seem to be able to continue following Republican Senate leader Mitch McConnell's statement on the debt ceiling.
Looking at the price chart of the EUR/USD pair, the price movement has featured a plunge of close to 70 pips in the Asian session and entered the European session yesterday.
The plunge on display also recorded the lowest level ever recorded in the 15 -month period since July 2020 at around 1.15300 before rising slightly at the end of the session.
The decline has negated the uptrend presented at the end of last week’s market and bounced back past the Moving Average 50 (MA50) barrier level at the 1 -hour timeframe.
The lower price movement is likely to be able to reach the support zone of 1.15000 which is the most difficult resistance zone to break.
The further support zone at the 1.14000 level is expected to be the focus if the 1.15000 level is successfully passed and in turn will once again record the latest lows for 2021.
If the price rebounds, analysts expect the price may return to the SBR (support become resistance) zone of 1.16000 which has been tested many times but still has not been broken.
Penetrating the SBR zone, the next price movement is expected to lead to a higher SBR zone around 1.17000 which still remains the focus zone for investors.
