Overcoming gloomy forecasts, the US (US) NFP employment report for June came in with satisfactory figures when it was published in the New York session yesterday.
Job growth rose by 147,000, beating the low forecast of 111,000 while the unemployment rate was forecast to rise to 4.3%, recording a decrease of 4.1%.
This had the effect of a surge in the value of the US dollar in the early New York session yesterday.
However, the price movement was mixed after that due to the presence of news regarding the approval of Donald Trump's tax cut and spending bill in the House of Representatives.
Examining the movement on the EUR/USD currency pair chart, the price has started to show signs of a bearish movement.
Previously, the continued price increase was seen stalled at the 1.18000 resistance zone which limited the movement to higher levels.
On Thursday, the price, which was flat in the Asian and European sessions at 1.18000, then plunged around 80 pips following the reaction to the NFP report being published.
Reaching 1.17200, the price showed a rebound before closing the New York session trading around 1.17500.
The price movement continued to trade slowly in the Asian session this Friday morning, but being below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart shows a bearish signal for the price.
If the decline continues lower, the price will test last week's focus zone at 1.17000.
A decline lower than that zone will show a clearer signal for a downward movement in the price.
If the opposite happens, the price that made the increase will once again test the resistance zone of 1.18000.
Passing that important zone will bring a new 3-year record high for the price with the target moving around 1.19000.
