The euro became the major currency on Wednesday, following concerns over the continuing rise in European cases of Coronavirus infection.
European Central Bank (ECB) president Christine Lagarde also warned that the risk of viral transmission would affect the recovery of inflation rates when speaking at the ECB forum.
Meanwhile, cases of infection are still high in the United States (US) to exceed 100,000 cases a day. With the risk to this economy remains to see the US dollar traded stable against other safe-haven currencies declining following reports on vaccine developments.
Adding to the confidence of investors in the Russian follow-up market has also been reported that their Sputnik V vaccine test reached an effectiveness level of up to 92%.
Assessing the price movements of the Euro and US dollars on the EUR / USD chart, the price shows a bearish pattern since the beginning of the week showing a bearish trend based on the movement below the Moving Average 50 (MA50) barrier level over the 1 hour time frame.
On Wednesday's trading, the price has moved below the support zone of 1.18000-1.17800 to record the latest weekly low of around 1.17450.
However, the price moved back up to the SBR zone (support become resistance) with the level of 1.17800 tested until trading continues in the Asian session this morning.
With the bearish trend pattern, the price is expected to continue to decline towards the support level of 1.17200 before testing the RBS zone (resistance become support) 1.16800.
On the other hand, if the price manages to break the level of 1.18000 and also the dynamic barrier of MA50, the initial signal for a change in the bullish trend will project the resistance zone of 1.19000 as the next bullish target.
