Market Crash, This Is An Analysis For EUR / USD Movement

 The price movement on the EUR / USD currency pair chart this week is seen to be more driven by US dollar trading influenced by current market sentiment.

Significant declines were seen on Tuesday when President Donald Trump decided to stop discussions on the implementation of the US economic stimulus package which triggered risks in the market while increasing the value of the US dollar.

Still, Trump responded back with his statement on the old social Twitter, urging the Senate to immediately approve aid for the aviation sector as well as small businesses.

The market reacted positively to seeing the US dollar move weaker again on Wednesday trading.

The price on the EUR / USD chart yesterday was seen showing a daily rise of more than 50 pips testing the 1.17800 high in the New York session before closing lower.

There are expectations for prices to decline again following European Central Bank (ECB) President Christine Lagarde's statement that the European economic recovery still needs a long time and that central banks need to step up more stimulus to support the economy.

However, price movements are seen to be further driven by US economic stimulus package discussion sentiment. If the talks produce positive results, the US dollar is expected to continue to weaken, on the other hand if the talks are seen to fail and increase risk, the US dollar will strengthen.

The downtrend is expected to return to the support level around 1.17200 before a downtrend above that level will lead to the RBS zone (resistance become support) at 1.16800.

On the other hand, if the price manages to make an increase past the resistance zone of 1.17800-1.18000, a higher increase will be expected towards the resistance of 1.19000 thus recording the latest high level of 2 weeks.