The New York session yesterday showed the US dollar strengthened again after moving weakly since last week.
But with sentiment still unchanged, analysts are already anticipating the situation where there is profit-taking activity by investors on the previous positions that usually occur at the end of the month.
As shown in the price movement on the EUR / USD currency pair chart yesterday, the price has managed to continue rising to reach the expected level of resistance at 1.20000 to record the highest level since early September.
But as soon as it reached that level, the price plunged back around 80 pips closing the New York session trading around 1.19250.
Moving below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price may signal early for a bearish trend change.
However, market sentiment remains supportive of the EUR / USD chart increase with the expectation that the US dollar will continue to move weakly influenced by vaccine factors and policy easing in the United States (US).
The price is expected to rise again towards the resistance level of 1.2000 and investors are waiting for the price reaction in the zone whether the price can pass to a higher level.
If the price continues to fall, the level of 1.19000 in the RBS zone (resistance become support) will be the closest support level of the price.
A lower drop below the zone will push the price down to the 1.18000 concentration level again.
Investors will also monitor the reading of European economic data to be published today which will affect Euro trading.
