The US dollar continued to show a decline towards this weekend to a 2-and-a-half-year low against other major currencies following market risk-on-sent sentiment that reassured investors.
Although Republicans and Democrats in the United States (US) Congress still failed to reach an agreement on the implementation of the previous economic stimulus package, there were preliminary indications for a $ 908 billion package proposed by both parties that attracted market attention.
Investors are optimistic that the stimulus package will reach an agreement before the December 11 deadline or else they will face the risk of government shutdown.
These positive factors have managed to boost Euro trading against the US dollar although the European central bank (ECB) will increase its quantitative easing next week.
On the EUR / USD pair price chart, it can be seen that the price increase shown is not over yet to continue to record a 2-year high.
After the previous rise reached the high level of 1.20900, yesterday's trading saw the price testing the resistance level have managed to break through the New York session to close the trade at the new high around 1.21250.
The sustained momentum will see the price move to the level of 1.21500 to continue recording the latest high level since April 2018.
However, investors need to be vigilant if there is a change in sentiment in the market that will return to lower prices again likely with the strengthening of the US dollar.
The price decline is seen to return to test the RBS zone (resistance become support) at 1.20000.
