US dollar trading declined to a 1-week low following positive US economic data as well as recent expectations for the implementation of the US fiscal stimulus package reassuring investors of the prospect of economic recovery.
Statement by US Treasury Secretary Steven Mnuchin on good progress in discussions on stimulus packages in talks with House Speaker Nancy Pelosi.
This has reassured investors to invest in high-return investments and made the US dollar a safe-haven again.
In addition, investors will also be wary of US dollar trading ahead of the US NFP employment data report on Friday.
It can be seen that the US dollar is weak against some major currencies in the New York session yesterday.
On the price chart for the EUR / USD pair, the price is seen trying to make a decline but only test the support level of Movong Average 50 (MA50) in the 1 hour time frame of the price movement before rebounding.
The price moved further flat at the end of the New York session and closed trading around the 1.17200 level which is seen as a support level.
Continuing trading at the beginning of today's Asian session, the price is seen to rise from the level of 1.17200 but the movement is still slow.
The rise is expected to be higher following the expected depreciation by the US dollar in the next session with the increase heading towards the focus zone at 1.18000.
On the other hand, if sentiment changes and the price falls again below the support level of MA50, the price will plunge back to the support zone 1.16100.
