Monday, November 16, 2020

Showing off the rise, EUR / USD heads for resistance zone 1.19000

 The US dollar moved weak at the start of this week after resuming its losses at the end of last week.

Previously, the US dollar had shown solidification even though other safe-haven currencies had shrunk following the risk-on market sentiment which was influenced by the positive report on vaccine developments.

The atmosphere in the United States (US) is still in a state of balance with the high outbreak of Coroanvirus. On Friday, the world's largest economy reported more than 184,000 new outbreaks over the course of 24 hours.

Several countries in the US have announced measures to stem the pandemic with lockdowns.

In Europe, the situation is not much different with the health system under increasing pressure. The persistent outbreaks are high in Europe's main economic regions.

The euro currency moved slowly in the last week especially against the US dollar which showed a better performance.

In the EUR / USD pair price chart, the downward trend in prices at the beginning of last week started to show changes at the end of the week so it continues at today's market opening.

Prices are moving above the 1.18000 zone and also the support level of the Moving Average 50 (MA50) on the hourly frame signals a bullish trend for this week.

The price is seen to be making an advance towards the 1.19000 resistance zone which was tested on Monday last week before prices showed off their initial decline.

The higher increase over the zone will record the latest 3 months highest face and may break down to 1,20000 face.

Conversely, if prices dip back below the original 1.18000 level, the price support level is seen to be at 1.17200 before the price drops lower to test the RBS (resistance become support) zone of 1.16800.