The US dollar is again showing its declining trade value as the market is optimistic that the US economic stimulus package will be agreed upon in the near future and hopes to be implemented before the presidential election.
It is reported that the White House and Democrats are close to reaching an agreement after President Donald Trump also expressed his willingness to accept greater value for aid even though he was not liked by his own Republican Party.
The depreciation of the US dollar has given way back to other major currencies traded up in the market.
Like the Euro, the increase is seen to be quite significant although investors still see the currency as facing the risk of a downturn due to the increasing number of cases of Coronavirus infection in Europe, prompting more areas to be restricted.
In comparison, the Euro has risen to a 1-month high against the US dollar as shown on the movement on the EUR / USD pair chart.
After the price soared to the SBR (support become resistance) zone of 1.18000 at the beginning of the week, the rise was continued in yesterday's trading and passed last week's high to reach the new high of 1.18400.
Based on the positive development of the US economic stimulus package which weakened US dollar trading, the bullish momentum on the EUR / USD chart is expected to be maintained for the price to continue rising further in subsequent sessions.
The next rise is seen to re-test the resistance zone at 1.19000 for the price to record the latest 5-week high.
However, if the results of the stimulus package discussion are disappointing, the price will plummet again pressed by the re-strengthening US dollar.
The price zones that need to be focused on the price decline are at 1.18000, the RBS (resistance become support) zone 1.17200 and also 1.16100.
