Thursday, November 19, 2020

Price Drop Cues For EUR / USD, Traders Need To Be Prepared

 What's happening to the price movements for the main EUR / USD currency pair chart this week?

After testing the price resistance zone below the 1900.00 level since Tuesday, the price initially exhibited a decline so that it fell lower below the support level of the Moving Average 50 (MA50) on the 1 hour frame indicating a change in the bearish trend.

The US dollar was initially seen as moving stronger after experiencing depreciation in value for the previous several sessions. Meanwhile, the euro currency is also at risk of being threatened by the pandemic outbreak in Europe.

The development of vaccines continues to be monitored by investors after several series of positive test decisions were reported by several companies that developed the Covid-19 vaccine.

However, investors remain vigilant by seeing that the number of virus outbreaks continues to increase.

On the EUR / USD price chart, the price is likely to be seen making a decline towards the support level in the RBS (resistance become support) zone of 1.18000.

The continued decline will lead to a support level of around 1,17200 or a zone of 1,16800.

If the initial price jumps up, the resistance zone 1.19000 will be tested again after the zone failed to penetrate since last week.

A higher rise triumphantly overtaking the zone will post a new 11-week high profile and may reach resistance up to 1,20000.