As stated in the previous analysis, the level of 1.19000 became the resistance level for the price on the EUR / USD currency pair chart seeing the price again fail to cross the resistance zone yesterday.
Markets saw the US dollar strengthen again at the start of the New York session yesterday with drastic price movements displayed after prices moved slowly since last week.
Analysts see the US manufacturing and services PMI data for November published higher than expected to be the driving factor behind the strengthening of the US dollar.
In addition, a different factor causing the US dollar to rise is risky sentiment with reports the US government is planning to form a coalition to oppose China following Beijing’s earlier pressure on Australia.
However, the US dollar weakened at the end of the New York session after rumors surfaced that Joe Biden would appoint former Federal Reserve (Fed) chairman Janet Yellen as U.S. Treasury Secretary.
With mixed manufacturing and services sector data in Europe being mixed it also pushed the price on the EUR / USD chart to a lower level yesterday.
The price has recorded a daily decline of around 100 pips reaching the support level of 1.18000 before the price rebounded.
Continuing in this morning's Asian session, the price is moving slowly below the 1.18500 level with the expectation that the decline will continue on the bearish trend where the price remains below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement.
The bearish move will once again test the 1.18000 support level in the RBS (resistance become support) zone before the downtrend continues.
However, if the market sees the price rise again, the resistance level of 1.19000 will be tested again and investors will evaluate the price reaction in the zone.
