The US dollar failed to maintain its strengthening momentum at the close of April trading as it moved weak at the market opening earlier this week.
The 10 -year U.S. treasury yield fell back to 1.60% prompting the US dollar to depreciate since yesterday's European session.
Meanwhile, major US stock market indices rebounded, reflecting a recovery in market sentiment and reduced appeal to safe-haven currencies such as the US dollar.
The New York session added further pressure on the currency king as U.S. manufacturing activity survey data recorded slower growth for April on published readings.
Meanwhile, manufacturing activity in the European zone rose to its highest level for April, supporting the strengthening of the Euro.
There are also reports that the European Central Bank (ECB) is likely to halt emergency stimulus measures when vaccination rates reach maximum levels as well as the economy rebounds rapidly.
These factors have prompted a bullish pattern to form on the chart of the EUR/USD currency pair at the beginning of the week.
The price rose from the level of 1.20150 which was the lowest level reached during last Friday's decline, and jumped back to the SBR (support become resistance) zone of 1.20600.
However, the price still failed to break the Moving Average 50 (MA50) barrier level in the 1 -hour time frame of the price movement which has not yet given a stronger signal for the price to continue rising.
Continuing the Asian session on Tuesday morning, the price moved slowly and declined from the MA50 barrier to re -exit from the SBR 1.20600 zone.
The ongoing decline is expected to test the support level at 1.20000 before the lower decline can head up to the support zone at 1.19000.
On the other hand, if the US dollar depreciation situation continues, the price will rise higher and pass the SBR zone 1.20600-1.20900.
Next, a higher rise in the price will head back to the resistance zone at 1.21500 which was touched last week.
