The bearish momentum on the EUR/USD chart on Monday was seen as failing to be sustained on Tuesday following several factors that were seen to interfere with the strengthening of the US dollar.
Risk-on market sentiment was assessed by investors amid concerns over Omicron's escalating contagion, likely to slightly reduce the appeal of safe-haven currencies including the US dollar.
In addition, the focus on the release of US manufacturing PMI data from the ISM survey, which recorded a declining figure, also showed the market's initial reaction to the depreciation of the US dollar at the beginning of the New York session yesterday.
But at the end of the session, the US dollar was seen moving well again.
On the EUR/USD chart, the price was seen trying to make a decline in the European session yesterday, but has not yet touched the level of 1.12700, the price rose again at the beginning of the New York session following the depreciation of the US dollar.
Technically, the price is still moving in a bearish trend due to the price movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the EUR/USD chart.
The lower decline is expected to head to the support zone at 1.12500 which is an important zone supporting the price increase a few weeks at the end of 2021 ago.
And the lower decline will test the main support zone in 2021 which is 1.12000 which is the lowest zone hit.
Yet if the price returns to give an early signal for a bullish trend change, the resistance zone at 1.14000 is still the focus to be tested after last week’s rise failed to break it.
Exceeding that level will push the latest rise to the expected level of around 1.14500 while recording the latest 7 -week high.
