The king of the USD recorded a slight strengthening at the end of last week after low liquidity as most market players 'rested' in conjunction with the Christmas celebrations.
Various factors may continue to be assessed by investors, among them sentiment on the Omicron infection as well as the potential for the Federal Reserve (Fed) to raise interest rates in 2022.
Most investors are also likely to be wary of profit taking activities as the market approaches the close of the fourth quarter of 2021 and the end of December.
It seems that the price on the chart of the EUR/USD currency pair which was initially a bit slow has displayed a plunge as it looks to enter the opening of the New York session last week (Friday).
That is, the plunge action seems to reach back to the RBS zone (resistance become support) 1.13000 before shining again at the beginning of the closing week of the fourth quarter with a jump of more than 20 pips.
The price movement also seems to give an early signal of a change in the downtrend pattern in line with the price starting to re -trade below the Moving Average 50 (MA50) barrier level.
In this case, investors are likely to wait for the price to re-break the RBS 1.13000 zone to once again hit the strongest support level so far around the 1.12650-1.12350 level.
More severe pressure to remain bearish altogether will push the price trail to the 1.12000 support zone which is also considered to be the 2021 low reached in November.
On the other hand assuming the price movement returns excellent to present an uptrend, then the resistance level is around 1.13500 and the price may be expected to be able to break through that level.
As such, the resistance zone of 1.14000 will likely be the next target to be reached and will also indirectly change the expectation for the price to remain plummeting.
