The US dollar ended trading at the end of last week with a weak performance following a significant depreciation following the reaction to the published US NFP employment data report.
Employment growth in April was lower than forecast, wage growth slowed and the unemployment rate rose again in the US.
As an important indicator for the setting of monetary policy by the Federal Reserve (Fed), the tendency for a transition to policy easing began to rise again in the market.
This situation has pushed the US dollar to move weakly after the NFP gave a signal that contradicted the results of the previous FOMC meeting.
Examining the price movement on the chart of the EUR/USD currency pair, the price is seen hovering around the 1.07000 zone after the FOMC meeting ended.
But at the end of the week, the US dollar continued to move weakly until it continued after the NFP employment data report was published.
The price surge has reached a concentration level at 1.08000 to record a fresh 3-week high.
However, the price retreated back down after testing that level before the price leveled off and slowly closed the last trading session of the week around the 1.07600 level.
The price movement slowed around that at the opening of the first session earlier this week and still maintains a bullish signal as the price remains above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart.
A further move higher would be expected to break the 1.08000 resistance tested last week.
Next, the increase will continue to reach the target of the latest height at the 1.09000 zone.
On the other hand, if the price shows a decline again, the closest concentration level of the price is seen to be around 1.07000.
A price break below the MA50 support will signal a price trend reversal before the move lower is extended.
After passing the 1.07000 level, the price drop is expected to continue towards the previous support zone around 1.06000.
