Market sentiment which is seen as a risky return has been a trigger factor for the resurgence of the US dollar in Tuesday's trading after showing a decline at the start of trading earlier in the week.
The Wall Street market showed significant declines in major indices, prompting investors to be wary of risky market signals, thus increasing the attraction of the US dollar as a safe-haven currency.
This situation has again put pressure on other major currencies in the market which had risen earlier in the week.
However, the strengthening momentum of the US dollar is likely to slow due to the fall in US treasury yields below the 1.60% level again.
Like the price chart of the EUR/USD pair, the price has managed to continue rising up to the resistance zone 1.20600-1.20900 for a record 7-week high.
But prices began to be seen making a decline in the European session connected to yesterday's New York session lower than that zone.
However, the decline is still supported by the Moving Average 50 (MA50) support level on the 1 -hour time frame which still signals the price has the potential to continue higher.
If the rise continues the resistance zone 1.20900 needs to be broken before the price heads to the latest high of the expectation at around 1.21500.
On the other hand, if the price falls below the MA50 level, the decline will test the latest RBS (resistance become support) zone at 1.2000 for the initial signal of a bearish trend.
The continued decline will return to the level of 1.19000.
