Analysts remain optimistic that the US dollar will continue to decline to end trading later this year after President Donald Trump signed a $ 2.3 trillion economic aid package.
The US dollar has fallen more than 6% this year with the Federal Reserve (Fed) expected to keep interest rates close to zero in addition to the US economic situation still struggling with the pandemic crisis.
Positive market sentiment with the good development of Brexit negotiations last week has further weakened the US dollar while the European currency has the advantage to rise again.
On the price chart of the EUR / USD pair it can be seen that the price has shown an increase in trading earlier this week recording around 70 pips daily increase.
The price has reached the high of 1.22500 yesterday before a reversal of around 50 pips but supported by the support level of Moving Average 50 (MA50) within the 1 hour time frame of the price movement.
The MA50 support level has not yet been broken indicating that the price movement is still in a bullish trend.
Continuing trading in today's Asian session (Tuesday), the price is seen continuing its rise towards the high level reached yesterday at 1.22500.
A successful increase above the resistance zone of 1.22500-1.22700 is seen to test the level of focus height at 1.23000.
However, if the price plummets again, the RBS zone (resistance become support) at 1.21800-1.21500 will be tested again and analysts will examine the price reaction in that zone.
A continued lower decline is seen heading towards the lower RBS zone below the 1.20900 level.
