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

<p>&nbsp;The decline in the US dollar continued in Thursday's trade yesterday following the market's reaction to the FOMC meeting.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p><br /></p><p>If the bullish pattern continues, the price is likely to surpass yesterday's highs before heading towards the 1.07000 resistance zone.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p>