As expected, the price movement was brisk yesterday, especially in the New York session which was embroidered with some important data involving the economy of the United States (US).
The data reading of US unemployment claims (unemployment claims) and the opening of JOLTS job offers show that the reading is less than satisfactory.
However, the more important data saw US private sector job growth (ADP) jump to 497,000 in June giving a positive initial signal for the NFP employment data which will also be in focus today (Friday).
In addition, the ISM survey data of the US service sector also came out with figures that rose above forecasts showing positive expansion for the important sector.
The US dollar yesterday showed drastic movements with price fluctuations in a large range with different effects compared to several major currencies including commodities.
On the price chart of the EUR/USD currency pair, a daily movement range of around 60 pips is noted with active price movement seen in the New York session.
Since the European session, the US dollar has moved weakly, showing that the price has increased from the level of 1.08340 to a height of 1.09000.
But the re-strengthening in the New York session saw the price pushed back down to its original low level before that.
However, the decline was seen not to continue as the price bounced back up to close the end of the session trading around 1.08870.
The price moving back above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart signals that it is still difficult for the price to extend the decline lower.
Investors are now looking forward to the US NFP jobs report as the closing of the trading curtain this week with the expectation that aggressive price movements will be exhibited.
If the price rises above the 1.09000 zone, the price increase can continue until it reaches the 1.10000 target.
The price also has the potential to record the latest 9-week high if the high is successfully overcome.
However, if the price breaks below the MA50 support, the price is likely to surpass the level reached yesterday before heading to the latest low again this week.
The 1.08000 zone is the main focus to be tested and investors will evaluate the price reaction in that zone for further price movement indicators.
