The European currency experienced a sharp decline in trading on Tuesday following restrictive movements for reconstituted economic activity to curb the spread of the Covid-19 pandemic on the latest wave.
The Euro has depreciated against the US dollar, especially during the New York session.
The US dollar, on the other hand, is seen to have regained its strengthening rhythm this week with increasingly risky market sentiment.
Among the issues such as the sale of firearms by the United States (US) to Taiwan that will increase US-China tensions, hopes for the approval of the fading US economic stimulus package as well as the lackluster development of vaccine testing, make investors cautious and move towards safe-haven assets .
Examining the price movement on the EUR / USD currency pair chart, the price has shown a significant price jump up to over 80 pips daily decline recorded reaching the level of 1.17300.
Investors have assessed a change in the bearish trend on the EUR / USD chart after the price dropped below the Moving Average 50 (MA50) resistance level on the 1 hour time frame and also passed the SBR zone (support become resistance) 1.18000-1.17800.
Price movements in the Asian session today are slow but investors are expecting a lower possible price decline in the European session or in the New York session.
A lower drop below the 1.17200 level will lead to the RBS zone (resistance become support) around 1.16800.
Further declines could reach back to the support zone of 1.16100 if the US dollar remains strong pressing lower prices.
On the other hand, if the US economic stimulus package agreement is reached, the US dollar is likely to weaken again and price increases are expected to return to the SBR zone 1.18000.
Next, the resistance zone of 1.19000 at the higher level is seen to be the destination of focus on the continued rise.
