The US dollar looked comfortable to maintain its strength in early trade in the week following market sentiment which remained risky as demand for the safe-haven currency increased.
The main Wall Street market index showed a significant decline making investors more vigilant for the volatile movements of the market in late March.
Adding to the strengthening for the US dollar as US treasury yields again showed a rebound after a slight decline over the weekend.
This situation will continue to put pressure on the movements of other major currencies in the market to perform well this week.
It can be seen that the price movement on the chart of the EUR/USD currency pair is still moving passively and tends to fall lower due to the pressure of the US dollar against the Euro.
Developments in Europe that are alarming with an increase in cases of viral infections are urging the government to tighten movements at once which will hamper economic recovery in the near future.
The price on the EUR/USD chart remains hovering below the 1.18000 level which is seen as the price resistance zone this week.
Based on current market sentiment, it is likely that the price will continue to decline lower with the initial expectation of the price to go to the support zone around 1.17000.
If the price rebounds beyond the SBR (support become resistance) zone of 1.18000, investors are likely to see the situation as an early signal for a reversal of the bullish trend.
Next, the upside will be expected to head to the SBR 1.19000 zone which was the price focus in previous trades.
However, investors will be cautious ahead of the US NFP employment data report released over the weekend and will have a major impact on price movements, especially the US dollar.
