The strengthening momentum of the US dollar since the end of last week was limited by the release of ADP employment data which measured the private sector in the United States (US) in the New York session yesterday with a gloomy reading.
Investors will be wary of expecting a weak performance of the US dollar until the end of the week as the US NFP jobs report is also forecast to record low employment growth for August.
The slight depreciation of the US dollar has given room for the Euro to rise again to be above the $1.0000 parity level.
European central bank (ECB) representatives also gave hawkish hints to continue monetary policy tightening at the next policy meeting.
However, investors are cautioned against the movement of the Euro following the blockade of energy supplies through the Nord Stream 1 pipeline from Russia to Europe that began on Wednesday yesterday for 3 days, which could affect trading of the European currency.
Examining the price movement on the chart of the EUR/USD currency pair, the price was seen to show an initial decline in yesterday's European session to around 0.99700 before successfully jumping again in the New York session past the 1.0000 level to reach the daily high level of around 1.0080.
Continuing trading in the Asian session on Thursday morning, the price was seen slightly lower and tested the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart.
If the price manages to continue the uptrend, the resistance at the 1.01000 zone will be tested again after last week's trade failed to break through it.
The continued higher rise is seen to test further concentration levels such as 1.01600 and 1.02000.
On the other hand, if the price drops below the MA50 support level and crosses the 1.0000 parity level, investors will prepare for a more severe price drop after the bearish signal.
It is likely that last week's price support level around 0.99000 will be tested before the price that manages to break through it will record the latest 20-year low with a target of around 0.98000.
