The Euro at the end of trading in 2020 is likely to struggle to maintain its strength after the depreciation of the US dollar provides room for other major currencies to rise in the market.
This is due to the increasing number of cases of Covid-19 infection in Europe which is still critical. Worrying when Germany reportedly recorded daily cases of up to 22,459 cases with a record death of 1,129.
The death toll in Europe's largest economy rose to 32,111 while infection cases reached 1.6 million.
Concerns that are expected to increase are believed to re-pressure Euro trading in the market until early 2021.
On the chart of the EUR / JPY pair yesterday saw the price that has passed the high level of 127.00 move back down again although the Yen is still trading weak.
This morning's Asian session also saw the price once again test the 127,000 resistance before descending hovering above the Moving Average 50 (MA50) support level within the 1 hour time frame of the price movement.
The 127.00 price zone became the price resistance zone which was also tested in early September but failed to penetrate.
If the Euro continues to move weakly, the price will move out of the resistance zone and move lower with the expectation of heading to the RBS zone (resistance become support) at around 125.00.
However, if the price manages to jump higher, the latest highs since March 2019 will be recorded on the EUR / JPY chart.
