The US dollar extended losses in Wednesday's trading overnight following the publication of the ADP NFP jobs report in the United States (US) in the New York session last night, meeting forecasts with the figure slightly declining to 455,000 versus 486,000 the previous reading.
Then followed by the final reading of US economic growth for the last quarter of 2021 which slightly decreased compared to expectations to last as previous readings pushed for the US dollar to continue to be weak ahead of the NFP jobs report at the end of the week.
Accordingly, the price movement on the chart of the EUR/USD currency pair has continued to advance higher overnight after successfully breaking through the resistance in the SBR zone (support become resistance) 1.11300.
This situation of rising prices is expected to continue after the surge that took place last Tuesday following the positive developments in peace talks between Russia and Ukraine that supported the strengthening of the euro.
Next up the price hike is seen to be testing the peg at 1.12000 before any further gains will head to around 1.12700 also to test the higher SBR zone.
However, investors remain cautious about the initial strengthening of the US dollar which may encourage price swings to plunge.
If the US NFP jobs report later in the New York session presents encouraging readings, it may be a factor for the US dollar to regain ground and be on the ground for police tightening by the Federal Reserve (Fed) earlier.
For a price decline, the level of 1.1000 will again become a pedestal for testing which may possibly be a level of support for prices.
However, continued downside price slide will push the price down towards the 1.09000 zone prior to the 1.08000 support zone.
