The previously risky market sentiment will be eased by the season of earnings reports by financial institutions and global corporate companies at the beginning of this last quarter.
A positive report by the Bank of America (BoA) has triggered a risk-on sentiment assessment and has had a depreciating effect on the US dollar as a safe-haven currency.
Thus, most major currencies took advantage of this to trade higher at the early opening of the week.
This can be seen in the movement of the price chart of the main currency pair EUR/USD which displayed a bullish pattern on Monday yesterday after the increase that surpassed the height of last week.
Yesterday's daily gain was recorded around 130 pips with the rise from the 0.97200 level passing last week's resistance at 0.98000 and reaching a high of 0.98500 in the New York session.
With the bullish pattern of the price moving above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart, it will encourage the expected increase to continue today to the 0.99000 zone.
For higher gains, the price can be expected to reach back to the resistance zone at 1.0000 after the zone was tested in early October.
However, if a change in price direction occurs, the initial price drop is seen to test the 0.98000 level which was previously a resistance for the price.
A break below that level and beyond the MA50 support will trigger the expected start of a bearish price trend.
The price is about to make a decline to the 0.97000 zone after several days of flat prices in that zone during last week's trading.
