The US dollar traded cautiously earlier in the week while investors awaited further developments in the United States (US) economic stimulus package.
In the latest development, the proposed $ 908 billion stimulus package previously will be presented to Congress and divided into two separate sections.
This is seen to restore market sentiment and affect the depreciation of the US dollar as a safe-haven currency.
In addition, the market trend towards risk-on sentiment was also driven by the development of vaccines with the announcement by Donald Trump that vaccination will begin today.
Examining the price movement on the EUR / USD currency pair chart over the past 2 weeks, the price is seen moving horizontally below the resistance zone 1.21800-1.21500.
Last Friday, the price also tested the resistance zone before making a decline again.
The opening of the market earlier in the week in the Asian session this morning also saw the price gap on the EUR / USD chart affected by the Brexit issue which also affected Euro trading but not so significantly against the Pound.
Despite failing to cross the resistance zone for 2 consecutive weeks, price movements above the Moving Average 50 (MA50) support level over the 1-hour time frame signal a bullish trend. Investors are still monitoring market sentiment before the movement is more clearly on display.
Market analysts expect prices this week to move higher than last week's resistance zone to record the latest highs since March 2018 based on current sentiment.
It is likely that the price increase will reach an altitude of around 1.22500.
If the price fails the resistance and makes a break below the support level of MA50, the level of 1.20900 will be the closest support level of the price before the price that continues to decline lower is seen heading towards the RBS zone (resistance become support) 1.20000.
