Financial market movements earlier this week slowed with weak US dollar trading after last week's risk-on sentiment remained tense for the major currencies.
The US NFP (US) employment data report for November, which was published last Friday, is less encouraging, signaling the recovery of the US labor sector continues to lose momentum by being affected by the third wave of the Coronavirus pandemic.
Investors are still awaiting further developments in the implementation of the US economic stimulus package and if the latest report dampens investor confidence, the US dollar is likely to show resilience.
For now, the US dollar is still seen trading weak against other major currencies in the market.
On the EUR / USD pair chart, the price has reached its latest high since April 2018 at around 1.21800 forming the latest resistance level before the price closed last week trading around 1.21200.
Price movements that start below the Moving Average 50 (MA50) barrier level over the 1-hour time frame make investors wary of expected bearish trend changes on the EUR / USD chart.
However, if the price continues to move in the bullish trend in the previous week, the price increase will test the resistance of 1.21800 last week to continue to record the latest highs.
However, if the price declines, the nearest support level is seen at 1.20900 with a higher tendency for further price decline.
The continued decline will again test the focus level at 1.20000 in the RBS zone (resistance become support).
Investors will also be monitoring European economic data throughout the week which will affect Euro trading with European central bank meetings being the main focus of the market.
