The US dollar experienced a significant decline at the close of last week's trading session after the focus was on the publication of the United States (US) NFP employment data report.
Roughly speaking, the NFP report for the month of December was positive with the unemployment rate dropping to 3.5% from 3.7% previously.
Employment growth in December came in at 223,000, beating expectations of 200,000. However, it is actually still low compared to the previous month's reading.
While the average salary income recorded a disappointing reading with a lower decrease to 0.3% compared to expectations at 0.4%.
When the US dollar failed to continue strengthening, following the ISM survey data of the US service sector which fell below the 50 point level became a bad sign for the health of the world's largest economy.
On the price chart of the EUR/USD currency pair, the price initially hovered slowly above the 1.05000 support zone and then surged to record a daily increase of 160 pips for last Friday.
The gains reached levels around 1.06470 at the close of the last session of the week and as prices resumed trading earlier this week, the slow rise was seen to continue.
The surge shown by the price has also crossed the important 1.06000 level and also broken the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart, signaling a bullish trend change for the week.
The price increase is seen to be heading towards the 1.07000 level for the price to test the resistance zone before breaking through it and recording the latest 7-month high.
The target for the next uptrend is around 1.08000.
However, if the situation changes and the price drops again, 1.06000 becomes the closest level that will be the focus to test first.
Next, if the price decline continues, it will return to the support zone last week at 1.05000.
