The Euro currency clearly showed a decline in trading on Tuesday yesterday after the media reported that the French government was close to implementing measures to close their country's economy to curb the spread of pandemics following a sharp rise in daily infections.
French President Emmanuel Macron's speech will be the focus today on government action.
Also receiving the effect of a high increase in daily cases is in the United States (US) with concerns continuing to envelop the market ahead of next week's presidential election.
Of concern to investors is also the issue of the US economic stimulus package which is expected to be difficult for agreement to reach before the election. In fact, Donald Trump's statement that the people will receive the best stimulus package after the election, reinforces the point.
The US dollar is seen to be still strengthening, but investors are expected to be more cautious in the face of market turmoil until trading continues into the next week.
On the EUR / USD currency pair price chart, the price has bounced back below the 1.18000 concentration level in the RBS (resistance become support) zone.
The daily decline was recorded around 70 pips from the high level of 1.18400 down to reach the level of 1.17700 until the end of the New York session.
Slow price movements in the Asian session, but lower declines will be expected in the next European session.
Next, the level of 1.17200 will be the focus before the continued decline in the price will re-test the support zone of 1.16900.
But beware if the price returns to the upside, the 1.18000 level will be tested again while the Moving Average 50 (MA50) level in the 1 hour time frame of the price movement will be an obstacle to determine whether a bullish trend is occurring.
The next rise will make the key target at the 1.19000 resistance zone yet to be reached for the 6-week trading period.
