The USD continued to strengthen after the release of unemployment claims data recorded a positive reading which gave the impression that the labor market is recovering in the United States (US).
It seems that the reason at all has supported the USD showing a resurgence over the weekend which in turn also prevented the strengthening that the Euro currency wanted to show on Wednesday.
Investors may be wary ahead of the release of inflation (US) data in tonight’s New York session that could also convince investors for the Federal Reserve (Fed) to raise interest rates faster.
Looking at the price on the chart of the EUR/USD pair, the price movement seems to have receded over 70 pips in yesterday's trading session (Thursday) until it has broken the focus zone of 1.13000.
The factor has also seen the price reversal with the possibility that the price is expected to hit the resistance trendline again before once again registering an increase.
But price movements were seen slowing at the start of today’s Asian session (Friday) which is likely that investors may take precautionary measures ahead of the European and New York sessions later.
But if the price is not able to make a rebounce on the resistance trendline, of course investors will issue expectations for the price to touch the support zone again 1.12000.
That aspect is indirectly likely to dismantle the price movement to test again to the lowest level since July 2021 around 1.11900 before it is expected to be able to decline even lower.
On the other hand, if the price on the EUR/USD chart continues to excel, the focus zone at 1.13000 is likely to be the first direction that will be reached first.
A more aggressive rise will support the price movement to reach its highest level again this week around 1.135000 before the expectation towards the SBR (support become resistance) zone of 1.14000.
