Market sentiment is increasingly showing a recovery at the beginning of the week supported by optimistic development factors towards a fiscal stimulus agreement in the United States (US) as well as expectations of a Brexit deal.
The situation has put pressure on the US dollar safe-haven to move around the 2-and-a-half-year low early in the trading session before re-consolidation is on display in the New York session.
While the development of vaccines, it is reported that vaccines have been distributed in the US and UK, but concerns are still being seen on the rise in infection cases and mortality rates.
On the EUR / USD currency pair chart, the price is still showing an uptrend at the beginning of the week but the uptrend was restrained at the resistance level of 1.21800 before the price showed a decline again in the New York session yesterday.
Price movements are still hovering above the Moving Average 50 (MA50) support level over the 1-hour time frame signaling the trend is still bullish.
Major price movements are still awaited by investors while the development of key issues in the market is still being monitored.
Meanwhile, investors will be on the lookout for FOMC meetings as well as European economic data that will affect price movements on the EUR / USD chart.
If the price manages to jump past the resistance zone yesterday, the price increase is still expected to reach the level around 1.22500 to record the latest high level since April 2018.
However, if the price falls again from the resistance zone 1.21500 and below the resistance level of MA50, the price support level is seen at 1.20900.
A lower decline is seen towards the RBS zone (resistance become support) at 1.20000.
