The US dollar returned to strengthening at the start of trading this week following a number of factors that put pressure on the market and increased demand for safe-haven assets.
In addition to the Brexit issue, investor concerns were re-injected by tensions between the United States (US) and China with reports that the US would impose sanctions on some Chinese officials and make Beijing respond.
In addition, the development of the US economic stimulus package is still bleak while the number of Coronavirus infections in the US is reported to continue to increase.
As shown on the chart of the EUR / USD major currency pair yesterday, the price has made a decline earlier in the week after continuing the decline during the end of last week's trading session.
Last week the price reached the high of 1.21800, the highest since April 2018. However, that level is seen as an obstacle for the price to continue rising.
After yesterday's price drop to the level of 1.20900, the price jumped again almost to the level of 1.21700 but before reaching the resistance level last week, the price closed again lower again.
Price movements below the Moving Average 50 (MA50) barrier level also signal a price drop but investors are waiting for clearer indicators.
If the decline continues successfully beyond the level of 1.20900, investors will look forward to a rebound in the zone for the selling position with the expectation of a lower decline.
Next, the bearish target is expected to return to the RBS zone (resistance become support) at 1.20000.
But if the price manages to soar and break the resistance last week, the price will continue to record the highest level of trading for a period of more than 2 years.
