As had been expected after the depreciation of the US dollar at the FOMC meeting, analysts remain observant that the US dollar is still on track for its strengthening.
But without waiting long, the depreciation of the US dollar ended with the king of the currency return to excellent performance until the New York session yesterday.
Thus, it can be observed that the price movement on the chart of the EUR/USD currency pair, the expectation for a higher spike in the price slipped when the bearish pattern is again displayed.
The bulls did not last long above the resistance level of 1.0600 before the bulls re -moved below the Moving Average 50 (MA50) resistance level on the 1 -hour time frame for a bearish trend resumption signal.
The price that made the rise reached the level of 1.0640 was then seen to have plunged back to the support zone of 1.0500.
Important zones that have been supporting price movements since last week resumed trading earlier this week, returning to focus for re -testing this weekend.
The US NFP employment data report will drive the direction of further price movements at the close of trading this week.
If the decline continues, the lower price break through the 1.0500 support will record the latest low of the next 6 years is seen to test the target at the end of 2016 support zone around 1.0400.
On the other hand if the NFP report is disappointing and drives the US dollar depreciation, the price could rise again past the 1.0600 resistance and surpass the highs reached yesterday.
The target for the next higher rise is for the price to head up to the 1.0800 high which was the price focus zone before.
