The US dollar has been weak since last weekend after investors regained confidence in the positive development of the Covid-19 vaccine being distributed around the world making US dollar trading as a safe-haven decline again.
In the middle of last week, investors saw the strengthening of the US dollar but the momentum did not last long when the currency rebounded against the end of the week.
As shown on the price chart of the EUR / USD pair, the price has re-emerged after the decline initially reached the level of 1.20200.
The price has moved above the support level of Moving Average 50 (MA50) during the 1 hour time frame of the return movement which gives a bullish trend signal on the EUR / USD chart.
The price increase that continued until the beginning of this week is expected to re-test the resistance zone 1.21500-1.21800 achieved last week.
If market sentiment remains positive this week, prices have the potential to continue rising above the resistance zone last week.
Next, the price increase will lead to the level around 1.22500 thus recording the latest high of 5 weeks.
However, if there is a change in sentiment that sees the strengthening of the US dollar, investors will see a bearish scenario like last week.
The price decline will test the support zone at 1.20900-1.20550 as well as the MA50 support level.
The support level of 1.20200 last week will then be tested again before the price leads to the focus level of 1.2000.
European economic data involving the business sector in Germany will be the focus of this afternoon's European session which will affect the Euro.
