The United States (US) NFP employment data report for November published in the New York session last Friday has invited mixed reactions in the market.
The US dollar initially strengthened when the report was published, but weakened again at the close of the week's final session.
Examining the components of the data, average earnings in the US increased over October while employment growth was higher than forecast, but not over the previous month.
Meanwhile, the US unemployment rate remained high at 3.7% as expected.
On the chart of the EUR/USD currency pair last Friday, the price hovered at the height of 1.05400 and then plunged 100 pips as soon as the NFP report was published.
However, after reaching around 1.04330 and also testing the support level of the Moving Average 50 (MA50) on the 1-hour time frame of the chart, the price bounced back to close the end of the session trading at the height of 1.05400 again.
Resuming trading at the opening earlier this week, prices continued to move higher in the Asian session this morning (Monday) to record fresh 6-month highs.
A further move higher is expected to break through 1.06000 before the next target is likely to be the concentration level at 1.07000.
On the other hand, if there is a decline again, the RBS (resistance becomes support) zone of 1.05000 will be tested for investors to evaluate the price reaction in that zone.
If the price breaks lower, crossing the MA50 support will signal a move for a bearish trend.
The price is expected to go to the concentration level of the previous week such as at the level of 1.04000 or lower.
