The Euro currency became increasingly risky into trading this weekend following enhanced movement restrictions in Europe following an increase in infection cases as well as slow vaccine deliveries.
Against the US dollar, the Euro continued to weaken ahead of the German business climate survey data while the focus was also on the European conference.
The US dollar managed to maintain its strength, which was increasingly supported by the release of positive US economic data.
The final reading of US Gross Domestic Product (GDP) growth for the fourth quarter of 2020 was encouraging and unemployment claims data in the US also dropped to a 1 -year low last week.
President Joe Biden also said that the vaccine distribution plan would be doubled after reaching the initial target of 100 million injections as scheduled. This factor is also seen to support the appreciation of the US dollar in the market.
Seeing the price movement on the chart of the EUR/USD currency pair, the price has made a decline to the latest 4 -month low.
The decline has passed the support zone of 1.18000 with the daily low reached yesterday around 1.17600.
Trading continuing into the Asian session on Friday saw the price return to the 1.17800 level testing the SBR (support become resistance) zone.
The lower decline is expected to head to the level around 1.17200-1.17000 to record the latest lows.
If the price manages to soar higher and passes the Moving Average 50 (MA50) barrier within the 1 -hour time frame of the price movement, it is likely that investors will begin to prepare for a reversal trend situation.
The price increase will head back to the SBR (support become resistance) zone of 1.19000 which was successfully passed in the early trading of the week.
