The US dollar remained flat on continued trading on Wednesday which was seen to be influenced by two key factors.
The first is the nomination of former Federal Reserve (Fed) Chairman Janet Yellen as Secretary of the United States (US) Treasury by the Biden administration. This is seen to strengthen financial management and convince investors.
The second is the confidence factor in the hopes for vaccines available in the near future as several companies developing vaccines have revealed positive test results.
However, the risks are still visible in the spread of pandemic outbreaks that are still at an alarming level.
On the EUR / USD major currency pair price chart, the price showed yesterday's rise towards the 1.19000 level, but the decline is seen again as the market approaches the opening of the New York session close to the level of around 1.18400.
The US dollar continued to depreciate during the New York session with the price continuing to rise above the support level of the Moving Average 50 (MA50) within the 1-hour time frame.
Continuing trading in today's Asian session (Wednesday), the price is seen testing the 1.19000 resistance zone where the level failed to break through last Monday's rise.
The rise in prices was also driven by the encouraging reading of German economic data supporting trade for the Euro.
If the price increase manages to break through the resistance zone, the next target is seen to be heading to the 1.19500 zone before reaching the latest high level at 1.20000.
However, if the script at the beginning of the week repeats where the price plunges again after failing to pass the zone, the support level of 1.18000 will wait for the price to plunge.
