Last weekend the market saw the re -strengthening of the US dollar in a market supported by an increase in US treasury yields.
Earlier, the US dollar had been declining since the beginning of the week with expectations that the situation would continue following news that President Joe Biden had signed a US economic stimulus package worth $ 1.9 trillion.
Continuing with the market opening earlier this week, the US dollar moved slightly weaker before showing a rebound following a rise in US bond yields.
The main focus of the market this week that will have a big impact on the US dollar is the outcome of the FOMC meeting early Thursday.
On the price chart of the major currency pair EUR/USD, a significant decline can be seen in the price last Friday after a series of gains throughout the week.
Failing to reach the resistance level of 1.2000, the price plunged back into the RBS zone (resistance become support) above the level of 1.19000 but closed the trade higher again around 1.19600.
Prices moved weak at the beginning of the Asian session as the re -strengthening of the US dollar dampened price gains and pushed prices down again.
If the price drops lower, the RBS zone at 1.19000 will be re -tested before the lower decline can reach up to the support level of 1.18000.
On the other hand, if the price manages to jump, the price will head to the level of 1.20000 to test the SBR zone (support become resistance).
The continued rise will lead to the focus zone last month around 1.20600-1.20900.
