Towards the end of the week, the US dollar showed a strengthening due to market sentiments which are at risk driven by the announcement of movement restrictions in the city of Chengdu, China due to the spread of Covid-19.
The strengthening of the US dollar was also supported by the release of ISM survey data of the manufacturing sector in the United States (US) in the New York session yesterday with a positive data reading.
But investors will be more cautious ahead of the US NFP employment data report that will be published in the New York session later tonight with low job growth expectations for August in America.
The Euro currency again showed a more significant decline with concerns in Europe remaining focused on the energy crisis.
A speech by the President of the European Commission, Ursula von der Leyen will be awaited on September 14 regarding the emergency plan to intervene to deal with the rising energy costs in Europe.
The price movement on the chart of the EUR/USD currency pair is seen to fail to display an upward pattern in the horizontal zone since last week when the price registered a daily decline of around 130 pips on Thursday yesterday.
The price fell back below the parity level of 1.0000 until it reached the lowest level in the New York session around 0.99100.
The 0.99000 support zone remains a focal point that has not been breached since last week's trading, but it is likely that the price will cross it if a price plunge occurs after the release of the NFP data.
Continued price declines are seen heading towards around 0.98000 to record a recent 20-year low.
On the other hand, if the price successfully rises again, passing the parity level and the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart will give an expectation of a change in the price trend that is about to happen.
A move higher is expected to return towards the 1.01000 level for price to test the resistance zone that failed to break through last week.
