The US dollar maintained its strength on Wednesday trading after regaining momentum to rebound the previous day supported by hopes of economic recovery in the United States (US).
Following the spike in U.S. bond yields, U.S. retail sales data released at the New York session yesterday for the January issue showed the highest reading figures since June last year.
Indicators for an increase in consumer spending rates following economic assistance have further boosted investor confidence in the economic recovery situation.
Thus, it can be seen that the US dollar continues to strengthen against most major currencies in the market.
On the EUR / USD pair price chart yesterday, the price has shown a lower decline continuing from the 1.21500-1.21800 resistance zone tested on Tuesday.
The price decline has passed the RBS zone (resistance become support) 1.20900-1.20550 reaching the level of 1.20300 in the New York session yesterday.
Price movements returned slowly around that level until trading resumed in the Asian session on Thursday.
If the price remains moving below zone 1.20550 which changes function as SBR zone (support become resistance), the decline in price is seen to lead to the focus level of 1.20000.
A lower drop will test the 1.19500 support level reached in early February.
On the other hand if the price manages to soar again, the SBR zone 1.20550-1.20900 will be tested before a higher rise will go to the resistance zone 1.21500-1.21800 again.
