The US dollar slipped to a 6 -week low against most other major currencies in the market while the Euro was strengthened by hopes of a vaccination program in Europe.
The rise in U.S. treasury yields still failed to inject strength into the U.S. dollar as investors still saw a rise to the 1.60% level still low after hitting a 14 -month high last month.
Analysts believe support for the Euro currency was triggered by the announcement by the European Union (EU) that it has confirmed an additional 100 million doses of Covid-19 vaccine by BioNTech and Pfizer.
Europe is likely to show a faster recovery pattern for the second quarter of this year before being followed by other developing countries.
On the price chart of the EUR/USD pair, meeting investors ’forecasts for the price to soar higher recorded the latest 6 -week high past the 1.20000 resistance that failed to be broken last week.
Initially, the price was seen starting trading this week with a decline in the Asian session yesterday. But in the European session, the price jumped up to 100 pips up to the level of around 1.20500.
A higher rise is expected for the price to enter the focus zone in the range of 1.20600-1.20900 today.
But investors also need to be prepared for a bearish situation with possible volatile movements ahead of the European central bank’s monetary policy meeting on Thursday and European economic sector data on Friday.
If the price makes a plunge, the 1.2000 level will be the latest support level of the price before the lower decline will re -test the 1.19000 level.
