As expected, the German economic sentiment of the ZEW survey published in the European session yesterday rose higher than expected.
This factor also supports the strengthening of the Euro currency in the market but is not seen to have such a significant impact on price movements as shown on the EUR / USD currency pair chart.
The rise in prices is seen more driven by the depreciation of the US dollar influenced by the speech of US Treasury Secretary Janet Yellen yesterday.
Yellen urged lawmakers to act larger in economic aid packages and not worry too much about debt. The situation that was expected before his speech again eased market risk sentiment and affected the depreciation of the US dollar.
The price on the EUR / USD chart on Tuesday showed early signs of a bullish trend after the price made a move above the 1.21000 level and also passed the Moving Average 50 (MA50) barrier within the 1 hour time frame of the price movement.
The high reached above the level of 1.21400 in the New York session before the price closed lower and slower.
Continuing in the Asian session this morning (Wednesday), the price is seen continuing the rise to head to the SBR zone (support become resistance) around 1.21500-1.21800.
A higher rise is seen to lead to the next SBR zone at 1.22200 and also 1.22500.
However, if the rise fails, the price will decline below the 1.21000 level, the bearish trend is likely to resume until the end of the week towards the 1.20000 support zone.
