The strengthening of the US dollar on Tuesday did not last long after seeing the currency depreciate again until the end of the New York session.
Giving an initial shock to investors in this morning's Asian session, the value of the US dollar plummeted before stabilizing as the market reacted to Georgia's ongoing election count.
It is reported that Democrats are seen leading the vote count for the two seats contested. The Democrats' victory will give more support to future President Joe Biden in the Senate.
On the chart of the major currency pair EUR / USD, the price showed a reversal to the resistance zone of 1.23000 in the New York session yesterday before slowing around the zone until the end of the New York session.
This morning's Asian session saw prices soar to record the latest high of around 1.23250 following the market reaction with the Georgia election vote count.
However, the price declined below the 1.23000 level and the expectation of aggressive price movements until the final voting results.
If the US dollar continues to depreciate after this, prices could potentially soar with investors' initial reactions to expectations of a greater stimulus by the new President to revive the US economy.
The price on the EUR / USD chart will move higher with the price target reaching the high level of 1.25000.
However, if the US dollar strengthens again in the market, the price will be pressed lower again to the RBS support zone (resistance become support) around 1.22500.
A lower price drop will lead to a lower RBS zone around 1.21800-1.20900.
