Rising U.S. jobless claims data as well as a decline in U.S. treasury yields added pressure on U.S. dollar trading over the weekend.
This situation has left room for most other major currencies in the market to strengthen especially the Euro currency.
The price movement on the chart of the EUR/USD currency pair has continued to rise to a 2 -week high after passing the resistance level of 1.19000 yesterday.
Austrian central bank governor Robert Holzmann says the European Central Bank (ECB) is likely to start reducing bond purchases (tapering) in the summer and will support the re -strengthening of the Euro.
Thursday’s trading saw the price rebound after testing the Moving Average 50 (MA50) support level on the 1 -hour time frame before breaking the 1.19000 resistance in the New York session.
Almost touching the 1.19300 high, the price receded and moved slowly until resuming the Asian session trading on Friday morning.
The price is slightly lower and investors will wait for the price reaction at the level of 1.19000 which is seen as a new RBS (resistance become support) zone.
It is likely that with the continued depreciation of the US dollar, the price will resume rising to hit the latest highs this week with the next destination target being at 1.2000.
If the price falls below the 1.19000 zone as well as the MA50 support level, investors need to be prepared for a bearish situation again on the EUR/USD chart.
The initial decline is expected to the level around 1.18400 before going to the RBS (resistance become support) zone of 1.18000 which supports the price surge at the beginning of the week.
