The US dollar is seen as still maintaining its strength, but investors judged the king of the currency to close last week's trading a little gloomily following reactions to the US NFP jobs data report.
Published readings for April, the increase in U.S. jobs managed to surpass expectations of 390,000 to record a figure of 428,000 equivalent to the previous month’s reading that had been updated.
Although the increase in employment managed to exceed expectations, the average income in the US fell slightly lower while the unemployment rate also remained unchanged compared to expectations to decline.
This mixed reading is seen limiting the movement of the US dollar which exhibited a not -so -significant strengthening in the last trading session last week.
On the price chart of the EUR/USD pair, the price remains hovering at a 5 -year low with the 1.0500 zone seen as a support zone for the price since the end of April.
Last week's rise only reached the 1.06400 level as the reaction of the US dollar depreciated after the FOMC meeting before the re -strengthening US dollar resumed its decline to the 1.0500 zone.
Still reacting to the bearish trend movement, the price moved below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the EUR/USD chart again after the rally ahead of last Friday’s NFP report failed to break the 1.0600 level.
If the US dollar manages to show a strengthening this week, the lower price drop will be expected to break the 1.0500 support zone to continue hunting for the latest 5 -year record low.
The zone that is the focus of further decline is at 1.0400 which is the price support zone in December 2016 trading.
Yet if the price manages to jump from the horizontal zone since last week, a rise that passes the 1.0600 and 1.06400 levels tested last week will signal for a change in the bullish trend.
A higher rise will target the 1.0700 resistance before testing the SBR (support become resistance) zone at 1.08000 which was the previous focus.
