The US dollar moved stronger in trading earlier this week due to investor concerns over rising cases of viral infections as well as doubts about the speed and size of the economic stimulus package to be launched in the United States (US) by President Joe Biden.
In addition, investors are also cautious ahead of the Federal Reserve (Fed) monetary policy meeting. However, the main expectation is that the Fed will continue to maintain loose policies to support economic recovery.
While the Euro currency is weakening with the pandemic crisis plaguing Europe as well as movement restrictions that will hinder economic recovery in the near future.
These factors led to a decline in the EUR / USD currency pair chart earlier in the week.
As can be seen, the price failed to break the resistance of 1.21800 before falling again and falling below the level of 1.21500 in the New York session yesterday.
A drop below the Moving Average 50 (MA50) barrier level over the 1 hour time frame also signals a change to the bearish trend.
The price reached a low of around 1.21200 before closing trading around 1.21400.
If today's trading (Tuesday) continues to decline, the support level is seen at 1.20900 before the lower price decline will head back to the 1.20000 support zone.
However, if the price manages to make a surge again, the resistance level at 1.21800 will be tested again before the price tests the SBR zone (support become resistance) at 1.22200.
