The speech by the President of the European Central Bank (ECB), Christine Lagarde yesterday was seen not to have a significant impact on the Euro currency in the market.
However, the Euro is again seen to be on the rise after the bearish pattern has been displayed since last week.
Examining Lagarde's explanation, the central bank still sees the economy still struggling towards recovery while facing a new wave of Covid-19. Thus, the Euro is still considered risky.
However, the factor supporting the Euro is the fact that the exchange rate of the Euro against the US dollar is not a policy target by the ECB. This, in turn, has given room for the Euro to rise, but the rate of price increase is likely to be limited.
With the US dollar slowing ahead of the NFP job data report this weekend, the price on the EUR / USD chart once again showed yesterday's rise from the 1.16100 support level.
The rise has also surpassed the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement which signals the beginning of a trend change on the EUR / USD chart.
The Asian session on Tuesday saw a slow-motion test the resistance level of 1.16800 with the expectation of a bullish move towards the SBR (support become resistance) zone of 1.17200.
However, if the price returns to the downtrend, the 1.16100 support zone will be re-tested before a lower downtrend is expected to reach the 1.15000 concentration level.
