Risky market sentiment was seen giving an advantage to safe-haven currencies such as the US dollar and the Yen in early trading of the week.
Although the US dollar moved well in the market, the Euro managed to strengthen against the king of the currency.
Analysts assess the factor holding back the momentum of the strengthening U.S. dollar is the development of President Joe Biden’s $ 1.75 million spending package rejected by Senator Joe Manchin.
Still, concerns over Omicron’s contagion are seen to still support the US dollar on the market this week.
On the price chart the EUR/USD pair is seen displaying a bullish pattern for the opening of trading earlier in the week with a daily rise of over 60 pips recorded.
The 1.12400-1.12500 zone remains an important price support that has revived the downside for trading in recent weeks.
If the price manages to pass the Moving Average 50 (MA50) barrier on the 1 -hour time frame, analysts see higher price gains will head back to last week’s highs reached around 1.13600.
Next, the resistance zone at 1.14000 will be the focus of the price’s still continued rise for the bullish trend.
On the other hand if the decline is lower again if the US dollar returns to dominate again, the price will re -test the 1.12400 support zone again.
The continued decline will head back to the lowest price zone this year at 1.12000.
