The US dollar showed a strengthening moment after the stock market saw a resurgence driving up demand for safe-haven assets.
In addition to the increase in cases of viral infections, political uncertainty in the United States (US) ahead of the Georgia election adds to the risk of pressure on the US dollar to determine the decision of either the Republican or the Democrats.
The US dollar bounced back from a 2-and-a-half-year low after investors began to see risky market sentiment.
On the price chart of the major currency pair EUR / USD, the price at the beginning of the week showed a surge by continuing the US dollar depreciation from the end of last year.
However, after testing the 1.23000 resistance zone, prices plummeted again following the strengthening of the US dollar in the New York session.
The price drop also fell below the Moving Average 50 (MA50) barrier level during the 1 hour time frame of the price movement giving an early signal for a bearish trend.
However, the decline stagnated at the support level of 1.22500 before the price rise was revisited in today's Asian session (Tuesday).
The price hovered above the 1.22500 level in the RBS zone (resistance become support) and also tested the MA50 resistance level to indicate further movement of the price.
If the price continues to rise, the resistance zone of 1.23000 will once again be tested and investors will evaluate the price reaction in that zone.
However, if the price falls below the level of 1.22500, the initial trend of decline will occur with the support level at 1.22100 will try to break the price.
A lower downtrend will test the previously focused RBS zone at 1.21800-1.21500 which will be the price support zone to fall lower.
