The US dollar continues to move strong in hopes of a larger fiscal stimulus in the United States (US) by President Joe Biden as well as the implementation of a more aggressive vaccination program.
Biden is expected to announce a $ 3- $ 4 trillion infrastructure plan after informing 90% of adult Americans are eligible to receive the vaccine on April 19th.
The situation leading to a faster recovery of the US economy has boosted investor confidence in the trading of the king of world currencies.
The market has seen the strengthening of the US dollar exhibited in the European session yesterday with the surge in US treasury yields soaring to recent highs.
The price movement on the chart of the major currency pair EUR/USD met the expectation to continue the decline and further away from the level of 1.18000 after testing the SBR (support become resistance) zone earlier in the week.
The decline continued to the level of around 1.17200 before the price movement was more flat until the New York market session ended following the US treasury yield which was seen to decline again.
Still, analysts still expect prices to continue to decline lower given the critical situation in Europe which is under pressure by rising infections.
The initial decline will head to the level of around 1.16800 before the lower decline will test the support zone of 1.16000 which was tested in September and November trading last year.
A bullish situation could also occur if market sentiment changes ahead of the US NFP jobs report over the weekend.
Investors will return to the SBR zone of 1.18000 for a rebound.
