Markets earlier this week were seen following last week's sentiment which is expected to continue to see a decline in the US dollar.
The US dollar has weakened over the past week following reports of poor NFP employment data and a dovish statement by Federal Reserve (Fed Chairman Jerome Powell on central bank monetary policy).
On the EUR / USD currency pair price chart, the price has managed to show a week-long rise from the support level of 1.19500 to the level of 1.21500.
However, after testing the level of 1.21500 in the resistance zone, the price declined again in the weekend trading to the level of 1.20900 in the RBS zone (resistance become support).
Following Wall Street’s major stock indexes showing up performance over the weekend, the price decline was only temporary with prices showing a resurgence until trading resumed at the opening of the market earlier this week.
Rising prices above the Moving Average 50 (MA50) support level within the 1 hour time frame of the price movement return confidence to investors for a bullish price trend on the EUR / USD chart.
Next, the resistance zone at 1.21500-1.21800 will be tested for the price to continue to record higher this week with the high level around 1.22500 will be the target.
However, if the price fails to pass the resistance zone, it is likely that the market will see a price drop back to the RBS 1.20900 zone.
A lower downtrend will test the 1.20550 level before the focus level at 1.20000 is seen as a potential rebound.
