Wednesday, November 11, 2020

EUR / USD Show Initial Down Pattern

 With positive reports on the development of vaccine tests by Pfizer and BioNTech stating that 90% of their vaccine effectiveness has boosted investor confidence at the start of trading this week by seeing save-haven assets such as gold and safe-haven Yen yen significantly decline.

However, the US dollar still survives the fall in value due to internal factors in the United States (US) still plagued by political uncertainty after the end of the election.

Optimistic sentiment towards the vaccine is also beginning to fade due to investor concerns that new cases of daily Coronavirus infection globally reach 500,000 cases with 1 in 5 occurring in the US.

Meanwhile, China's SINVOVAC vaccine test in Brazil was stopped after one participant was reported dead.

Cases of infection in Europe are also worrying after death rates in Italy, Spain and the UK have reached unprecedented levels since the first month of the pandemic.

The following factors affect the current movement of prices especially for the US dollar and Euro.

On the EUR / USD currency pair chart, the price is seen moving horizontally after the price fell from the resistance level of 1.19000 at the beginning of the week.

A significant decline was seen in the European session yesterday reaching the level of 1.17800 in the RBS zone (resistance become support) following the market which reacted to the reading of German economic sentiment survey ZEW survey which recorded the lowest decline since last April.

On continued trading in the Asian session this morning, the price is seen moving slowly but still below the Moving Average 50 (MA50) barrier level at the 1 hour price movement which shows a bearish trend.

If the decline continues, the price will pass the RBS zone 1.18000-1.17800 and will then move to the support level around 1.17200

On the other hand, if the price jumps past the MA50 barrier, the resistance zone 1.19000 will be tested again after the price failed to penetrate the zone earlier in the week.