The US dollar is seen continuing to maintain its strengthening pattern on Thursday trading yesterday despite the publication of the United States (US) jobless claims data last week rising higher than expected.
The US dollar did not react negatively when the data was published at the beginning of the New York session yesterday, instead it was seen to continue strengthening towards the end of the session.
However, investors will be more cautious today ahead of the US NFP employment data report which will also be the focus of the central bank, the Federal Reserve (Fed).
The Fed in the majority is still signaling to continue aggressive monetary policy tightening, and some have even expressed the need to raise interest rates up to 125 basis points to lower inflation.
Examining the price movement on the EUR/USD currency pair chart yesterday, the price maintained a bearish pattern after a trend reversal signal last Wednesday when the rise failed to break through the 1.0000 parity zone.
The movement on the bearish trend was displayed after the initial rise in the Asian session yesterday was seen to fail to cross the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the price chart before the price displayed around 130 pips of daily decline.
The price made a decline from the 0.99200 level down to the expected 0.98000 level at the end of the New York session before the price movement slowed down around that in continued trading in the early Asian session this morning.
With the bearish pattern that has been displayed, the price is likely to continue further declines with the next target being around 0.97000.
If that level is also crossed, the main support zone at 0.95500 which was reached last week will await the price for a continued decline.
On the other hand, if the price manages to jump from the current zone of 0.98000, becoming the latest support to rebound the price, the concentration level around 0.99000 will be reached again before the trend change signal will be evaluated.
Higher gains are seen to retarget at the 1.0000 parity zone resistance that failed to break through in earlier trades this week.
