Because the USD Continues to Weak, EUR/USD Paces Again Towards $1.0700!


 The decline in the US dollar continued in Thursday's trade yesterday following the market's reaction to the FOMC meeting.

Investors will be more alert for the movement of the US dollar today (Friday) ahead of the US NFP employment data report in the New York session.

The forecast is for job growth in the US for October to be lower than the previous month, while the unemployment rate is forecast to remain unchanged.

On the chart of the EUR/USD currency pair, it can be seen that the price increase is displayed following the depreciation of the US dollar.

After the price jumped from the 1.05200 level during the reaction to the FOMC meeting, the price is seen to have penetrated the 1.06000 zone before reaching a height of around 1.06650.

Closing trade at the end of the New York session, the price retreated back down to around 1.06200 and slowed around that resuming trading in the Asian session this morning.

If the bullish pattern continues, the price is likely to surpass yesterday's highs before heading towards the 1.07000 resistance zone.

A higher high could be noted above that resistance if the US dollar continues to trade weak after the reaction to the NFP report is published.

Meanwhile, the expectation for a price drop if it happens, the price will drop back below the 1.06000 zone and test the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart.

A further drop in price will aim to move towards the 1.05000 support zone which has been the focus of trading in recent weeks.