Heading into the opening of the New York session on Thursday yesterday, investors have already begun to see the initial decline displayed by the US dollar.
The situation continued until the United States (US) ADP employment data was published at 8.30pm along with unemployment benefit claims.
The US dollar remains weak even though the US private sector job growth reading for May was better than forecast.
Added to the ISM survey data of the US manufacturing sector published at 10 pm, the gloomy figure added to the pain of the US dollar to end the trading of the New York session.
This has given more room for major currencies to rise again against the US dollar in the market yesterday.
The euro still had a chance to strengthen yesterday after falling to an 11-week low against the US dollar last Wednesday.
If you look at the chart of the EUR/USD currency pair yesterday, investors are starting to evaluate the early signs of an impending trend change.
After hitting a recent low of around 1.06400 earlier, the price has managed to make a rebound to reach a high of 1.07600 until trading resumes in the Asian session this morning (Friday).
The surge that passed the 1.07000 level also broke through the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart, signaling a change in the bullish trend for prices.
The price increase is seen to approach the level of 1.08000 which will be the initial resistance to be tested and maintain the pattern of yesterday's increase.
If that level is also successfully broken, the next concentration zone of 1.09000 will be the target to aim for.
However, if the price plunges again at the close of trading this week, the price could fall back below the 1.07000 level and reach back to the lowest level of last Wednesday.
Next, the 1.06000 zone is seen to be tested and the price will also record the latest low again.
The focus will now be on the publication of the US NFP employment data report which will guide policy setting by the central bank and also have a major impact on price movements.
