Current market sentiment still gives an advantage over US dollar trading to strengthen earlier this week.
The US dollar rose from a nearly 3-year low reached last week after being supported by rising US treasury yields and projected US economic growth for 2021 and 2022.
The factor is again attracting investors to buy US dollars compared to before with expectations for the currency to decline due to the stimulus to be intensified in the US.
The strengthening of the US dollar is clearly seen in the bearish trend as shown on the chart of the major currency pairs EUR / USD.
After starting to show an initial pattern of decline over the weekend, the price continued to decline lower at this week’s trading opening.
If we look at yesterday's price decline, it also passed the RBS zone (resistance become support) 1.21800-1.21500.
Continued trading in today’s Asian session as well (Tuesday) was seen trying to continue lower lower at the start of the session.
The bearish move is expected to reach the price support level below 1.21000 in the lower RBS zone.
However, if the price manages to jump above 1.21800 and also the Moving Average 50 (MA50) barrier level in the 1 hour time frame of price movement, it is likely that investors see it as a signal of a bullish trend change.
A further increase in price will lead back to the SBR zone (support become resistance) at 1.22500.
