US dollar trading slowed earlier in the week with banks in the United States (US) on holiday in conjunction with Columbus Day.
Investors are still optimistic that discussions on the implementation of the US economic stimulus package will yield positive results but there are still some obstacles in the negotiations.
Starting trading on Tuesday, the US dollar was seen showing off its strength in the Asian session following reports of US arms sales to Taiwan. This issue will increase tensions between the US and China.
The risk has prompted the re-strengthening of the US dollar as a safe-haven but investors will assess whether the factor will have a lasting impact or vice versa.
Examining the price movement on the EUR / USD currency pair chart, the price has reached a high of 1.18320 at last week's trading close.
The price hike failed to continue with the horizontal price movement at the start of trading this week with a test test of 1.18000 in the RBS zone (resistance become support) as well as the Moving Average 50 (MA50) support level for movement in the 1 hour time frame.
In the Asian session trading this morning, prices showed a decline with the strengthening of the US dollar pressing the price back to 1.18000 before the price slowed around the zone.
If the risk continues to rise and supports the US dollar trading value, the price will make a decline below the RBS zone of 1.18000-1.17800 before heading back to around 1.17200.
A lower decline is seen heading into the RBS zone around 1.16800.
However, if the price resumes the increase shown last week, the high level of 1.18320 will try to overcome the price.
Higher ascending destinations are expected to reach the 1.19000 concentration level.
