Investors are now focusing on the U.S. NFP jobs data report for December to be published in tonight’s New York session (Friday) for a signal for the Federal Reserve (Fed) to continue their policy tightening measures.
The US dollar moved flat while investors remained wary of the issuance of the NFP report.
It is likely that market players are expecting for the NFP data readings to be published well after the ADP employment report for the private sector published last Wednesday recorded a jump in the readings.
As observed on the price movement on the chart of the EUR/USD currency pair yesterday, the price is more flat than the increase displayed last Wednesday.
The price, which also hovered at the Moving Average 50 (MA50) level in the 1 -hour time frame, also failed to give a clearer signal of movement ahead of the NFP report.
Price movements will be more aggressive in the New York session soon due to the impact of investors' reactions to the central bank's focused data.
The decline will test the support zone at 1.12500 before the continued decline will lead to the main support zone of 2021 which is at 1.12000.
However, if the data report is disappointing and makes the US dollar depreciate, the price will jump to a higher level with the expectation of the resistance zone 1.14000 to be the price target.
Rising prices beyond the zone will record the latest 7 -week high with an expected level of 1.14500 to be tested.
