Investor confidence is mounting on the development of a $ 1.9 trillion economic stimulus package by President Joe Biden after it was approved by the United States House of Representatives.
The US dollar showed strengthening in early trading this week and was also supported by the release of US manufacturing PMI data in the New York session yesterday.
ISM survey manufacturing data rose higher for February than expected to remain at previous month levels.
Thus, the movement of the US dollar was seen to remain stable until the New York session ended although the strengthening momentum was seen to be slightly slower.
On the EUR / USD currency pair price chart, the price made a decline in the European session yesterday to continue the downtrend last week.
The price drop reached the level of 1.20300 testing the support zone last week.
Continued trading at the beginning of today's Asian session (Tuesday) showed the price trying to continue lowering to break the 1.20300 support.
A lower decline is expected towards the key support level of 1.20000.
But investors need to be wary of rising prices if the Euro currency regains its strengthening rhythm.
The market is likely to react to positive statements by European central banks describing the policies implemented that have successfully supported the economic recovery process in Europe.
Even so, growth projections are still weak.
The price increase will re-test the SBR zone (support become resistance) above the level of 1.20600 as well as the barrier level of Moving Average 50 (MA50) within the 1 hour time frame of price movement.
Passing the SBR zone and the MA50 barrier will again signal a bullish trend change on the EUR / USD chart.
The price will then make an increase towards the resistance zone at 1.21500.
