The US dollar continued to strengthen to a 3 -month high against other major currencies in the market supported by increases in US treasury yields and expectations for a rapid economic recovery from the pandemic in the US.
Investors were also optimistic following news reported over the weekend of the approval of Joe Biden's $ 1.9 trillion stimulus package by the U.S. Senate after a number of changes.
The Federal Reserve (Fed) has also announced for the PPPLF income protection program will be extended for another 3 months until June 30, 2021.
The price movement on the chart of the major currency pair EUR/USD remained bearish with the strengthening situation of the US dollar continuing until the beginning of this week.
The Euro continues to come under pressure as prices continue to fall lower below the previous support level of 1.19000.
Putting pressure on the Euro earlier in the week when German industrial production data for January was published with lower -than -expected declining figures.
In addition to the European economic data published today that will be the focus, investors are also wary of Euro trading ahead of the outcome of the European central bank (ECB) policy meeting on Thursday.
Investors will remain looking at the price bearish trend signal as long as the price moves below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement.
The decline continued until trading continued into the Asian session on Tuesday despite the slowing momentum of price movements.
The decline is expected to head towards the focus zone at 1.18000 which was previously the support level in September 2020 trading.
If the price manages to rebound above the level of 1.19000 and passes the MA50 barrier, it is likely that the price trend will start to change for the price to move higher.
The next price increase will return to the SBR (support become resistance) zone of 1.2000 and last week's focus zone at around 1.20900.
