The Euro currency weakened during today's trading session following the European Union Economic Conference on Brexit and the Coronavirus pandemic.
European Central Bank (ECB) President Christine Lagarde is likely to deliver a dovish tone following the increase in cases of viral infections in Europe.
While the US dollar is also moving slowly as investors are still cautiously awaiting the development of the US economic stimulus package which remains gloomy with the Presidential election period approaching.
However, current market sentiment that is still at risk supports strengthening the US dollar from lower depreciation.
If you look at the price chart for the EUR / USD pair, the price movement on Wednesday was more flat than the previous day which saw a significant drop in prices.
Yesterday's decline only tested the support level of 1.17200 before rising again hovering below the Moving Average 50 (MA50) barrier level in the movement in the 1 hour time frame.
Today's trading session still saw the price test the MA50 barrier but failed to pass higher levels before showing signs of a decline at the beginning of the European session.
The bearish move is expected to return to the support level of 1.17200 or the price which continues to decline will lead to the RBS zone (resistance become support) at 1.16800.
On the other hand, if the price returns to the upside, the SBR zone (support become resistance) in the price range of 1.17800-1.18000 will return to focus.
