The New York session last Friday showed interesting currency movements especially for the US dollar before closing the week's trading.
A somewhat surprising reading compared to forecasts, the United States (US) NFP employment data report for April was better for April.
Job growth was higher than forecast at 253,000 and average income also increased to 0.5% compared to expectations to remain at 0.3%.
Adding more positivity to the report component when the unemployment rate decreased to 3.4% when the forecast was to increase to 3.6% from the previous reading of 3.5%.
This had the effect of a surge in the value of the US dollar as soon as the report was published.
As can be seen on the EUR/USD chart, the price was pushed lower to 1.09700 when the NFP data was published after hovering at the height of 1.10450 in the previous session.
However, at the close of trading at the end of the New York session, the price was seen to bounce back up to the 1.10300 level and the price closed around that.
The price movement that remains hovering below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart signals for continued bearish price movement this week.
If the price breaks below the 1.10000 level again, the bearish pattern will continue and is likely to break past last week's lows to reach the support zone at 1.09000.
Next, the target will shift at 1.08000 if the bearish movement of the price is more clearly exhibited.
On the other hand, if there is a rebound to break through the MA50 barrier, the resistance zone at the height of 1.10800 will be tested for the price of this week's latest record high.
If it succeeds in passing it, the target for the continued increase is towards the concentration zone at 1.12000.
