The market saw the price plunge on the chart for the EUR / USD pair earlier this morning in the New York session which saw the US dollar strengthen again.
The situation is due to a statement by US President Donald Trump who decided to stop discussions on the implementation of the US economic stimulus package after returning to the White House.
The result has re-triggered market risk sentiment with the stock market seen to be declining again.
Previously, the US dollar was expected to weaken with confidence that stimulus package discussions would produce positive results during the week seeing the US dollar depreciate significantly earlier in the week.
On the EUR / USD chart, the price soared on the Monday before trading on Tuesday yesterday seeing the horizontal price test the resistance zone of 1.18000 before the price again shows a reversal.
The decline to the Moving Average 50 (MA50) support level on the 1 hour price movement is beginning to signal the beginning of a bearish trend change.
While the Euro is also at risk following ECB President Christine Lagarde's concerns over the recovery of the European economy, prices will be pushed lower with the continued strengthening of the US dollar.
The decline is expected to reach the RBS zone (resistance become support) at around 1.16800 before a lower decline is seen towards the 1.16100 support zone.
However, if market sentiment changes again, the rising price will test the 1.18000 resistance again before continuing to rise higher.
