The price movement of the EUR / USD currency pair saw the price break through the resistance level of 1.18000 to record a 2-week high.
The situation was driven by the significant depreciation of the US dollar in the market over the weekend following optimistic expectations for the United States (US) economic stimulus package to reach an agreement.
The depreciation of the US dollar has allowed the major currencies to record a daily rise on the EUR / USD chart around 70 pips to the high of 1.18300.
However, trading earlier this week saw a difference in the opening price (gap) in the Asian session lower than last week's closing price.
White House adviser Larry Kudlow said President Donald Trump had offered a $ 1.8 trillion stimulus package including assistance to individuals and extended salary protection programs in the US.
Over the weekend, Speaker Nancy Pelosi in talks with US Treasury Secretary Steven Mnuchin was seen crowing to reach a negotiation agreement. This is a factor in the opening of lower prices due to the expected resumption of the US dollar.
Prices start around the 1.18100 level and move horizontally above that level while investors look forward to the latest developments of the discussion this week.
The price is likely to go down testing the 1.18000 level in the RBS zone (resistance become support) before continuing the uptrend to a higher level.
The next rise is expected to lead to the resistance level of 1.19000 which was tested in last September trading.
If the price falls lower below the 1.18000 level again, it is likely that the bearish trend of the price will start and the initial focus level of the decline is expected at around 1.17200 before heading to the RBS zone of 1.16800.
