Positive for US dollar trading this week as it recorded an increase to a 3-month high on Tuesday as investors took cautious measures against the rapid contagion rate of Covid-19 which is seen to hurt global growth.
With the strengthening of the US dollar as a safe-haven, commodity currencies as well as European currencies are again under pressure.
The so-called anti-USD euro however managed to absorb pressure not to depreciate too significantly against the US dollar.
Investors are also cautiously awaiting the outcome of the monetary policy meeting by the European Central Bank (ECB) on Thursday which will have an impact on the movement of the Euro on the market over the weekend.
On the EUR/USD chart, the price was seen making an attempt to rise on Monday, but the situation did not last long after the price moved back slowly below the 1.18000 level in Tuesday's trading.
Returning to signal for a bearish trend after the price moved below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame, the decline in the New York session yesterday hit the latest weekly low around 1.17540.
Continuing the Asian session this morning (Wednesday), the price moved flat at the closing level of the previous session around 1.17800 with the expectation that a lower price decline will occur today.
Analysts have expected the support zone at 1.17200-1.17000 to be hit in the near term for the continued decline.
The zone was last tested in March before prices returned to support to rebound in April to May.
However, if the price signals a change in the trend, a rise above the 1.18000 level again will start to push expectations for the price towards the 1.19000 resistance zone.
The next higher rise will be to the focus level at 1.20000 which was tested in early July last year.
