The strengthening of the US dollar towards the end of the week is seen as losing momentum as the value rebounds again.
US bond yields are seen to record a temporary decline in US unemployment claims data released at the New York session yesterday with higher-than-expected reading figures.
This puts a little bit of pressure back on US dollar trading which makes investors think the US dollar is likely to continue declining like last week.
As on the price chart of the EUR / USD pair, the price that made a decline this week reached almost to the level of 1.20200 before the market saw a price spike again yesterday.
The depreciation situation of the US dollar also provided room for the Euro as well as other major currencies to strengthen in the market again.
While awaiting some European economic data today, the Euro was also supported by a statement by European central bank policy makers yesterday with current policy indicators supporting recovery from the pandemic crisis to be maintained.
The price increase on the EUR / USD chart also passed the SBR zone (support become resistance) 1.20550-1.20900 after the Moving Average 50 (MA50) barrier level within the 1 hour time frame of price movement was also successfully broken.
This gives an early signal of a reversal of the bullish price trend with the expectation that a continued rise will head back to the resistance zone 1.21500-1.21800.
However, if the US dollar manages to strengthen before this week's trading draws its curtain, the price may fall lower again to the 1.20000 concentration level after yesterday's daily low was overcome.
The lower decline has the potential to lead to the support level of 1.19500 and also the level of 1.19000 which was the previous focus.
