The Euro failed to show a strengthening in Tuesday's trading despite the economic sentiment of the German ZEW survey published yesterday recording a rising reading.
The euro was affected by the re -strengthening factor of the US dollar in the market driven by the increase in the 10 -year US treasury yield to a 2 -year high.
Analysts are of the view that the factor could support the strengthening of the US dollar heading into the weekend, but investors are likely to be wary ahead of next week's FOMC meeting.
On the chart of the EUR/USD currency pair, the price has shown a bearish pattern this week ending the bullish trend of last week.
The price has slipped from the high of 1.14800 reached last week to the level of around 1.13150 as of yesterday’s New York session.
The price movement remains below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame giving a clearer signal for a bearish trend on the EUR/USD chart.
After the daily decline of around 100 pips was recorded yesterday, it is likely that the price decline will continue again today.
For bearish expectations, the support zone around 1.12500-1.12400 will be retested before the lower decline will lead to the 2021 focus support zone at 1.12000.
On the other hand, if the price makes a rise again, the previous focus level of 1.14000 will be the price resistance zone again.
Passing such barriers will push higher rises testing the highs reached last week for bullish trend signals of the price.
