Market risk-on sentiment following news of the 90% effectiveness of the Covid-19 vaccine which returned to boost investor confidence in the market was seen as failing to put initial pressure on the US dollar, which reaffirmed.
Even if Joe Biden wins the election, analysts think he is unlikely to see a major stimulus implementation if the vaccine is given to U.S. citizens and this could be a factor supporting the US dollar from falling.
The US dollar moved weak last week until Donald Trump's defeat in the election was finalized over the weekend.
On the EUR / USD pair price chart, the price has risen to the resistance zone of 1.19000 with last week's rise recorded around 300 pips.
However, the start of trading earlier this week saw the price test the resistance of 1.19000 before the price plunged back into the RBS zone (resistance become support) 1.18000 above the Moving Average 50 (MA50) support level on the 1 hour price movement.
Moving horizontally below the level of MA50 and above the level of 1.18000, investors are wary of waiting for further price movements to either make a rebound or continue lower.
A decline below the 1.18000 zone is expected to reach the previous focus level at 1.17200 before the price tests the RBS zone (resistance become support) around 1.16800. Meanwhile, the 1.16100 support zone will be the destination for lower prices.
However, if the price jumps again, the resistance zone of 1.19000 will be tested and if the price manages to break through the zone, the level of 1.20000 will be seen at the next target price.
Industrial production data in Italy and France as well as the economic sentiment of the German ZEW survey will be the focus of the European session which will affect the Euro currency as well as the EUR / USD movement.
