Previously, the results of the US Treasury, which soared in a report earlier in the week, supported the strengthening of the US dollar, but was seen to have experienced a resurgence of almost 7 basis points from its 10-month high.
The factor makes the US dollar depreciate again as the significant depreciation of the US dollar displayed since yesterday was driven by the expectation of a large-scale economic stimulus package to be presented by future US President Joe Biden on Thursday.
Against the Euro, the US dollar has recorded its biggest daily decline for a period of 3 months after moving strongly for 3 consecutive days.
The euro was also at risk after German Chancellor Angela Merkel's speech suggested that a 'lockdown' be implemented until April due to an increase in critical cases of viral infections in Germany.
On the EUR / USD currency pair chart yesterday, the price moved flat during the Asian and European sessions where the support level of 1.21350 reached the previous day failed to break.
Towards the end of the New York session it can be seen that the price has jumped again past the Moving Average 50 (MA50) barrier level in the 1 hour time frame of the price movement which has returned to signal the beginning of a bullish trend change.
After the price jumped 70 pips above the 1.22000 level and closed the New York session trading around that level, the price is seen continuing the rise in the Asian session this morning.
The price increase is expected to reach the level of 1.22500 to test the SBR (support become resistance) zone before reaching the resistance zone 1.23000.
However, if the price falls again, the RBS zone below the 1.21800 level will be re-tested and the price will need to break the MA50 support to signal further decline.
