The price movement on the EUR / USD currency pair chart on Thursday yesterday showed a decline to the latest low after successfully surpassing the level reached earlier in the week.
The price has dropped lower below the level of 1.21300, but after reaching the level of 1.21100 the price started to jump again close to the level of 1.21800.
Initially the US dollar is expected to continue to strengthen ahead of the announcement of economic stimulus by Joe Biden. These factors then do not have a significant impact on the financial markets.
The US dollar, on the other hand, has slipped back after investors reacted to Federal Reserve (Fed) Chairman Jerome Powell's dovish tone on the central bank's monetary policy.
Powell signaled that it was not appropriate to implement a reduction in bond purchases (tapering) based on the current economic situation in the United States.
This indicates that policy easing will continue to support economic recovery. Thus, it has the effect of depreciating the US dollar.
It can be seen that the price on the EUR / USD chart jumped again in the New York session yesterday after the consolidation was shown in previous sessions.
Continued trading in the Asian session on Friday slowed in the 1.21500 zone and still failed to cross the Moving Average 50 (MA50) barrier level in the 1 hour time frame.
Prices have not yet given a clear signal for an uptrend with the expectation of a bearish move back to the latest support level of 1.21100 yesterday.
A lower price drop is expected towards the focus zone at 1.20900.
However, if the price manages to soar above the 1.21800 level, the SBR (support become resistance) zone around 1.22200 will be re-tested which is the trading resistance this week.
A higher rise will head back to the SBR 1.22500 zone.
