The market opening earlier this week is seen to continue in favor of the US dollar after the king of the currency managed to close last week’s trade strongly supported by an increase in the 10-year US treasury yield.
Bond yields that soared to a high of 1.74% have dampened previous US dollar depreciation sentiment following the dovish results of the FOMC meeting.
The US dollar rebounded against several other major currencies in the market with an outstanding performance over the weekend.
On the price chart of the EUR/USD pair, the price that failed to reach the level of 1.2000 on the surge following the FOMC meeting has made a decline to pass the support level of 1.19000 last Friday.
Prices opened lower at the start of the Asian session today with prices expected to continue lower this week.
The decline is expected to test the support level in early March trading around 1.18300 before the next decline to the support zone 1.18000.
However, if the price manages to jump past the Moving Average 50 (MA50) barrier again in the 1 -hour time frame of the price movement on the EUR/USD chart, it will signal a change in the bullish trend.
Higher gains will re -test the 1.2000 resistance zone which still failed to break the price several times before.
