Risk-off market sentiment slightly faded at the end of last week's trading saw the US dollar weakening in addition to profit-taking activity by traders after the strengthening of the US dollar throughout the week.
Despite this, the US dollar remained closed last week with good performance and market sentiment is still considered risky due to the increasing number of cases of Coronavirus transmission as well as the uncertainty of the development of the US economic stimulus package.
Meanwhile the Euro continued to weaken with an increase in cases of viral infections in Europe prompting the implementation of movement restraint orders in key economic areas.
European central bank committee member Fabio Panetta warns that very loose easing policies are needed in the face of the latest wave of pandemics affecting economic recovery.
On the price chart for the EUR / USD pair, the price has shown a decline to the RBS zone (resistance become support) 1.16900 last week but is seen failing to continue lower.
The price movement at the weekend showed an uptrend, but returned below the Moving Average 50 (MA50) barrier within the 1 hour time frame and closed last week's trading below the 1.17200 level.
Continuing trading earlier this week in the Asian session, the price is seen still moving below the level of 1.17200 after testing the level and also the dynamic barrier of MA50.
The market expects to remain risky and give an advantage to the US dollar, the price will make a re-test of the RBS zone 1.16900 before continuing the decline to the support zone 1.16100.
On the other hand, if the price manages to make a rise above the level of 1.17200, a higher rise is seen towards the SBR zone (support become resistance) at 1.18000.
