Market movements are likely to be gloomy in the last week of trading for 2020 where investors will take steps not to be in the market in conjunction with the Christmas celebrations as well as the new year celebrations.
The US dollar moved lower in the Asian session this morning to begin trading this week following a recent report that Donald Trump had signed a $ 2.3 trillion economic aid package including $ 600 for Americans.
This positive sentiment will have a weaker impact on the US dollar as well as provide room for other major currencies to rise again.
On the EUR / USD currency pair chart, the price has shown an increase from the support level of 1.21800 in the RBS zone (resistance become support).
As of 10.30am local time, the price has shown an increase of around 30 pips testing the resistance levels on Thursday and Friday last week.
A rise that also surpassed the Moving Average 50 (MA50) barrier level in the 1 hour time frame of the price movement has given an early signal for a bullish trend on the EUR / USD chart.
A successful increase will test the resistance zone at an altitude of 1.22500-1.22700 before the next increase will lead to the level of 1.23000.
On the other hand if the price returns to the downtrend, the RBS zone 1.21800-1.21500 will be tested again which was previously the price support zone.
However, if the decline penetrates the zone, the price is seen to be heading to the support zone below the level of 1.20900.
