The US dollar exhibited its best weekly performance for the month with an uptick following investors turning back to safe investments with a number of risk factors in the market.
The increase in cases of Coronavirus infection in major economic countries as well as the slow progress in the United States (US) economic stimulus package has brought the safe-haven currency to the US dollar.
With cases of infection rising in Europe, the Euro currency has undergone an impact of depreciation by trading depreciating against the US dollar.
On the price chart for the EUR / USD pair, the price has moved lower yesterday continuing the decline in the early weeks after the horizontal movement of the previous day.
Testing the resistance level of Moving Average 50 (MA50) in the 1 hour time frame of price movement and failed to pass it, the price then plunged 70 pips past the level of 1.17200 to reach the daily low of 1.16870 in the RBS zone (resistance become support).
Continuing trading in the Asian session this morning, prices showed a weak uptrend continued from price movements at the end of the New York session.
The price is expected to test the 1.17200 level which forms the latest SBR (support become resistance) zone before continuing the lower decline past the RBS 1.16800 zone.
Next, the support zone around 1.16100 will be the target of lower price targets.
On the other hand, if the price returns to high above the level of 1.17200 and also passes the dynamic barrier of MA50, the initial signal of a trend change will be the investor's consideration.
A higher rise is expected back to the SBR 1.18000 zone which was previously the focus of the price.
