After displaying gloomy movements since the beginning of the week, the US dollar started to show a strengthening pattern on Wednesday's trading yesterday.
Supporting the strengthening of the US dollar, the ADP NFP jobs data report in the United States (US) which measures the private sector along with the US service sector survey data, both published with positive readings.
The US dollar has shown strengthening starting in the European session until the data was published at the beginning of the New York session, but again relaxed the momentum at the end of the session again.
On the price chart of the EUR/USD currency pair, there are early signals for a change in the price trend after last Tuesday's rise failed to break through the resistance at the 1.0000 parity zone.
The daily decline was recorded around 150 pips on Wednesday yesterday to a level around 0.98400 and it is seen that the price has dropped below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart in the New York session yesterday.
There was a resurgence in prices at the end of the extended session at the start of the Asian session this morning (Thursday), but saw prices test the MA50 barrier.
Ahead of the release of the US NFP jobs data report on Friday, investors will be wary of volatile price movements.
If the price decline continues below the 0.98800 level, it is likely that the price will also overcome yesterday's daily low before testing the level around 0.98000.
Continuing the decline lower after a clearer bearish trend signal, the price looks set to reach back to around 0.97000.
However, if the depreciation of the US dollar continues again, the price has the potential to resume its rise and test the resistance at the 1.0000 parity zone once again.
Successfully passing the resistance will be more positive for the price to continue to rise with a target towards the 1.01000 concentration zone.
