The US dollar moved stronger against several other major currencies in the market including the Yen, Pound and Euro with the projected US (US) projection on economic recovery in population vaccination curbing the Covid-19 pandemic.
While the Euro was seen showing its lowest performance earlier in the week with readings of European zone economic data published mixed.
German retail sales data for December 2020 declined to a negative level of 9.6% indicating a decline in consumer spending.
Adding pain to the Euro when France is currently facing an economic shutdown. The French Finance Minister said the move would cost € 15 billion a month.
The sharp depreciation of the Euro in the European session yesterday pushed the US dollar to a 6-week high.
On the EUR / USD currency pair price chart, the price initially moved horizontally in the Asian session yesterday around the 1.21300 level.
But the beginning of the European session saw the price plunge around 60 pips below the level of 1.20900. The price slightly bounced back to the 1.20900 level before continuing lower lower in the next session.
The end of the New York session saw the price close at the daily low of around 1.20540 but continuing in today's Asian session (Tuesday) the price showed a reversal.
The 1.20900 level will be re-tested which will be a resistance for the price before the decline is likely to resume.
A lower decline has the potential to hit back to the support level at 1.20000.
However, if the price manages to rise higher than the Moving Average 50 (MA50) barrier in the 1 hour price movement, the resistance level of 1.21500 will be the target price again.
