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The USD continued to strengthen its dominance in November as it approached the close of trading this month after gaining demand following a return to risky market sentiment.
Some of the sentiments include the resurgence of the Covid-19 epidemic in several countries as well as calls from some members of the Federal Reserve (Fed) to speed up the implementation of tapering measures are also support for the strengthening of the king of the currency.
First to be the main focus of the market is the release of German manufacturing and services PMI data which will be published in the European session later after it was rumored that there is a possibility that Germany will implement a lockdown.
The price on the chart of the EUR/USD pair seems to be still continuing its decline to almost test the support zone of 1.12000 and thus has also created the latest lows.
The price movement is seen starting a brisk move in the European session until the end of the session to produce a fall throughout November around 400 pips from the monthly highs.
The downtrend also seems to give a hint for the price to maintain the fall as it still continues to move below the Moving Average 50 (MA50) resistance level on the 1 -hour time frame.
On top of these technical factors, the 1.12000 support zone will likely be the next target to test if the price movement is able to remain intact in making a decline.
Strengthening investors' expectations is the expectation that the price on the EUR/USD chart will be able to break through the support zone to continue plummeting which is expected to head to the level around 1.11000.
On the other hand, the SBR (support become resistance) zone of 1.13000 is likely to be used as the nearest resistance level that will be tested if the price movement is able to show a rebound.
A more aggressive surge will see the price test the next SBR zone of 1.14000 and will indirectly give investors an early indication for a trend change to take place.
