November 16, 2021

It seems that EUR/USD showed a diving reaction at the beginning of the week

 The weakness of the Euro was influenced by the latest statement by the President of the European Central Bank (ECB) that Christine Legarde continues to give the USD a chance to remain strong.

The euro returned to mourning over worries about the spread of the Covid-19 pandemic in Europe ahead of the release of gross domestic product (GDP) data.

However, the USD continued to extend its dominance following the rebound in US treasury yields to 1.60% and was still supported by rising inflation in the past.

Checking on the price chart of the EUR/USD pair, the price seems to have once again created the latest lows for 2021 since July 2020 at around 1.13600.

The price movement trend is also seen to have penetrated the previous target zone to decline below the SBR zone (support become resistance) 1.14000 with a decrease of more than 100 pips.

The decline presented also continued to move below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame to remain intact maintaining the downtrend pattern over 4 weeks.

Being the next target is to be observed at the support zone at 1.13000 to be tested and at the same time will record again the latest lows before declining lower.

That is, the support zone was also the focus zone to be achieved in March and June 2020 trading before it was successfully torn in July 2020.

Meanwhile, if the price movement on the EUR/USD chart returns to record a surge, the previous target zone which is now the SBR zone at 1.14000 is likely to be reached again.

A surge for a clearer trend change will be seen if the price manages to break the MA50 barrier level to continue flying towards the next SBR zone at 1.15000.