Investors were shocked by the price spike on the EUR / USD currency pair chart yesterday to the latest highs since April 2018!
What are the factors that make the price drastic movement?
The key factor is seen in the latest offer report by policymakers in the United States (US) with a new total of $ 908 billion economic stimulus package. The figure is much higher than the values discussed earlier.
This gives confidence to investors for the economy to recover at a faster rate while impacting the depreciation of the US dollar in the market as a safe-haven currency.
As can be seen on the EUR / USD chart, the price has managed to break the resistance of 1.20000 yesterday after the price plunged while testing the resistance level earlier in the week.
The daily price increase on Tuesday yesterday recorded around 160 pips to the high level of 1.20900.
The level is also the highest ever reached price for over 2 years of trading period.
The bullish momentum is expected to be maintained ahead of the NFP employment data report over the weekend which is likely to slow down price movements.
A higher rise above the resistance of 1.20900 is expected today with the latest high altitude around 1.21500.
If a price decline occurs, the price is seen to be re-testing the 1.20000 level in the latest RBS (resistance become support) zone before investors will evaluate the price reaction in that zone.
If the price continues to rise again from the RBS 1.20000 zone, the trend remains bullish. On the other hand, if the price drops lower, there is likely to be an early signal of a bearish trend change.
