The king of the USD remained on record at the close of last week’s trading following a hawkish statement at a recent FOMC meeting that was more inclined to make a tapering move.
Yet a key focus for this week was the U.S. NFP jobs report on Friday after January data recorded a bleak -than -expected reading.
Meanwhile, the market is also expected to assess the prospects of the European Central Bank (ECB) whether to remain with the dovish move or otherwise in a meeting to be held on Thursday.
However, the price movement on the chart of the EUR/USD pair seems to have a surge during the beginning of the New York session (Friday) which may be due to profit taking activities.
However the price returned to move slowly as it wanted to close the market last week and which it continued into the end of January and also the beginning of the Asian session today (Monday).
Investors also think that price movements may remain bearish as prices are still moving below the Moving Average (MA50) resistance level for bearish trend signals.
Therefore, investors are likely to place the latest target at the support zone of 1.11000 before it is expected to continue making declines towards the next focus zone at 1.10000.
The more drastic decline will indirectly push the price on the EUR/USD chart to once again hit the latest low in 2 years since June 2020.
Assuming that the price movement returns to display upward action, then the nearest SBR (support become resistance) zone at 1.12000 will probably be the first direction to be reached again.
A significant increase will be seen if the price manages to break the SBR zone of 1.12000 to continue to jump to the next zone of 1.13000 in giving an early signal to the uptrend pattern.
