True to market analysts' forecasts, the US dollar resumed its strength towards the end of the week after moving weakly since last Wednesday's trading.
Continuing up to the beginning of the opening of the New York session yesterday, the US dollar was still moving lower in reaction to the release of poor US unemployment claims data.
But at the end of the New York session, the US dollar again showed a strengthening against most other major currencies except the Yen.
The Euro, on the other hand, moved well in the market until it came back under pressure with the strengthening of the US dollar.
As seen on the price chart of the EUR/USD pair, the price moved flat and slightly increased since last Wednesday but resumed the decline until trading resumed at the beginning of the Asian session today (Friday).
The price's attempt to break the Moving Average 50 (MA50) barrier on the 1 -hour time frame also failed to signal that the price is still in a bearish trend movement.
The decline in prices at the end of the New York session had also passed last Tuesday’s lows to record a weekly low of around 1.13000.
The lower price decline is expected to continue towards the focus support zone at 1.12500-1.12400.
But the next decline will test the main support zone of 2021 which is at 1.12000.
On the other hand if the US dollar returns to weaken again ahead of the FOMC meeting next week, a price increase could occur to signal a reversal of the bullish trend.
The 1.14000 zone will be the resistance for the initial price rise before a higher rise will test the highs reached last week around 1.14800.
