The financial markets in early trading this week still saw the US dollar move weaker against almost all major currencies due to investor confidence in positive market sentiment.
Market sentiment was supported by hopes of the US Congress to expedite the implementation of economic stimulus assistance after the government was taken over by President Joe Biden.
The optimistic situation has eased concerns over new virus variants following most countries presenting encouraging vaccine immunization results.
The depreciation of the US dollar at the beginning of the week was not fully utilized by the Euro as the price movements on the EUR / USD pair chart flat throughout the day.
The price is above the Moving Average 50 (MA50) support level on the movement in the 1 hour time frame and is not energetic to test the resistance level of 1.21500.
But investors are still confident that prices are moving in a bullish trend which is expected to see a higher price increase this week if it continues to stay above the MA50 support level.
The Asian session on Tuesday saw the price try to make a rise from the support level of MA50 towards the resistance zone of 1.21500, but the price movement remains slow.
The European session is expected to make the movement more actively influenced by the release of European GDP growth data and the German economic sentiment of the ZEW survey.
A successful price increase beyond the resistance zone at 1.21500-1.21800 will continue to rise higher towards the resistance zone of 1.22500.
On the other hand, if the price falls and gives early signs of a bearish trend change, investors will expect the price to test the RBS zone (resistance become support) at 1.20900 first.
If a downside occurs, the support levels at 1.20000 and 1.19500 will return to focus.
