The US dollar began showing strength in the Asian session on Monday for a good start to trading earlier this week.
The strengthening is seen to be driven by the increase in European and US (US) pandemic cases as well as the slow development of economic stimulus in the US which keeps investors alert.
At the end of last week, it was seen that the US dollar closed lower against other major currencies due to the factors that affected the depreciation of the US dollar.
On the price chart for the EUR / USD pair last Friday, the price testing the RBS zone (resistance become support) at 1.18000 failed to break through before rebounding to close last week's trading level.
The price increase which crossed the Moving Average 50 (MA50) barrier level in the 1 hour time frame of price movement however did not reach the weekly high reached last Wednesday around 1.18800.
The price decline in the Asian session this morning is seen still above the MA50 support level with price movements still slow.
If the price rises again, last week's high level as well as the resistance zone of 1.19000 will be the main focus of the price.
A higher rise above the resistance zone will record the latest 7-week high on the EUR / USD chart.
However, the Euro currency, which is still affected by the risk of economic recovery in Europe due to the increase in cases of viral infections, will push prices down.
If prices continue to decline until subsequent sessions with the continued strengthening of the US dollar, the RBS zone of 1.18000 will be tested again.
The price that successfully penetrates the zone will lead to the previous focus levels around 1.17200 as well as support 1.16900.
