The US dollar was significantly weaker in trading in the New York session yesterday following the market's reaction to the publication of the United States (US) unemployment benefit claims data.
The increase in claims last week increased to 261,000 compared to 233,000 previously.
This again adds to the expected tendency for the Federal Reserve (Fed) to keep interest rates unchanged rather than to increase them.
Market movements could be volatile until the final session of the week due to concerns ahead of US inflation data and the FOMC meeting next week.
It can be seen on the chart of the EUR/USD currency pair yesterday with a clear jump in price recording a daily increase of around 80 pips.
The price jumped from the level of 1.07000 to the level of 1.07800 before slowly continuing the opening trading of the Asian session this morning (Friday) around that area.
With the surge in price as well as the movement above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart will continue to give bullish signals for the price.
Yesterday's rise is seen to have successfully passed the height of last week and will now test the 1.08000 zone to continue the rise higher.
If it succeeds, the price will target an increase towards the next concentration zone at 1.09000.
However, it is not impossible that investors will be surprised again by a further decline at the end of this week's trade.
The price is likely to return to the 1.07000 level before extending the decline towards the 1.06000 zone.
