Although last week's US NFP employment data report recorded a disappointing reading with the economy losing 140,000 jobs in December, the US dollar managed to move strong to resume trading earlier this week.
The strengthening of the US dollar was driven by soaring US 10-year treasury yields that boosted investor interest in the US currency.
With the expectation of greater economic stimulus by future President Joe Biden, US economic growth is expected to be higher for 2021 and 2022.
On the price chart of the major currency pairs EUR / USD is already starting to show a clearer bearish pattern until it continues earlier this week.
Last Friday, the price made a slight increase but only tested the Moving Average 50 (MA50) barrier level in the 1 hour time frame of the price movement before the price plunged again to close the week's trading at the low of 1.21900.
This morning's Asian session saw prices continue to decline to the RBS zone (resistance become support) below the 1.21800 level.
This price support zone will support the price to rise again depending on current market sentiment.
If the price falls lower below the RBS zone, a lower decline is expected up to the lower RBS zone at 1.20900.
However, if the price manages to jump again, the SBR (support become resistance) zone at 1.22500 will be tested again with the MA50 barrier to be passed for a stronger bullish momentum.
Next the resistance zone at 1.23500 will be the destination of higher price increase.
