The drastic movement of prices on the EUR / USD currency pair chart in the Asian session for the opening of this week's trading makes investors more wary of trend-changing situations than last week.
The US dollar showed strengthening earlier in the week with market concern factors following reports of a new variant of Coronavirus causing many countries to tighten movement controls.
The concern has also drowned out positive sentiment that the US $ 900 billion economic stimulus package has been approved.
Around 20 pips of the opening gap of the price was seen in today's Asian session around the level of 1.22250 compared to last week's trading close around 1.22500.
The bearish pattern is also beginning to show as the price movement below the Moving Average 50 (MA50) barrier level is giving more indication for this week's bearish price trend.
As of 11 a.m. local time, the price on the EUR / USD chart has made a significant drop of over 50 pips to the 1.21800 level.
Investors will evaluate the price reaction on the RBS (resistance become support) zone which was previously also the price focus zone.
A lower price drop that successfully penetrates the zone will push the price towards the lower RBS zone below the level of 1.20900.
However, if the price jumps again, the focus level at 1.22500 will be tested again as well as the MA50 resistance level for the current trend trend signal.
A higher rise will test last week's resistance level around 1.22700 before the next price spike will lead to the 1.23000 concentration level.
