True to analysts' forecasts, market movements earlier this week have started to slow which is expected to 'rest' after facing important data as well as a meeting of central banks last week.
The US dollar failed to give a positive performance earlier in the week even as investors placed hopes of seeing a strengthening US dollar after the US NFP jobs report was seen supporting the king of the currency to strengthen over the weekend.
Although the increase in US jobs in January was higher than expected, investors are likely to be wary of rising unemployment and in turn will focus on the US inflation report this week.
With forecast figures for dismal monthly inflation readings, it’s a bit hard to expect a strengthening US dollar heading into the weekend.
Examining price movements on the EUR/USD currency pair chart, prices began to flatten after an NFP report on Friday denied the Euro’s strengthening was previously driven by hawkish decisions by the European central bank meeting.
Nevertheless, further strengthening of the US dollar was not successfully displayed in Monday’s trading yesterday to continue to push prices lower.
The price range in the 1.14000 to 1.14500 zone is now an important zone to signal further price movement while the price is flat in the area throughout yesterday.
Continuing the Asian session this morning (Tuesday), the price was also seen testing the 1.14500 level and failed to continue higher.
The Moving Average 50 (MA50) barrier level on the 1 -hour time frame is also a resistance to the price increase giving an early indication for a lower decline.
However, for the decline in prices requires a strengthening factor of the US dollar which is seen as a little shaky as investors may be wary of waiting for the US inflation report.
If a decline occurs, the level of 1.14000 will be tested first which will serve as the nearest support level.
A decline beyond that level will give investors the idea that prices are ready to plummet again.
The zone around 1.12500 will be the target for the price decline again which is seen as the SBR (support become resistance) zone.
Yet if the price manages to soar to continue last week’s bullish pattern, the resistance zone at 1.14800 will once again be tested like last Thursday.
A higher rise is seen heading towards the initial focus level around 1.15300 which was one of the important price zones in last October and November trading.
