The US dollar showed strengthening at the opening of the market at the beginning of yesterday's week due to the market sentiments which were considered risky as well as changing the movement pattern of the king of the currency compared to the previous week.
Investors are wary as the news of the spread of Covid-19 has been increasing since last weekend with a spike in infection cases in the main cities in China.
Even deaths have begun to be reported in Guangzhou and Beijing, among the economic centers that will surely also affect the global chain.
The Euro as an anti-USD currency was again trading under pressure when the greenback began to show strengthening in the early trading sessions yesterday.
However, price movements were more flat in the New York session while investors remained cautious towards the release of the FOMC meeting minutes report as well as manufacturing and services PMI data in Europe and the United States (US).
This can be observed on the movement of the EUR/USD currency pair chart with a downward price pattern displayed after the price leveled below the 1.04000 zone last week.
Yesterday's daily decline was recorded around 100 pips before the price leveled off around 1.02400 which became the support level at the time of making the price.
There is a slight rebound in the trade that continued in the Asian session this Tuesday morning, but the price is still considered to be moving in a bearish trend that is below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart.
If the price decline continues further, the price that falls below 1.02400 is expected to head towards the 1.01600-1.01000 focus zone before investors assess the price reaction for indications of further price movement.
After passing the zone, the price will aim to reach the parity level of 1.0000 again.
On the other hand, if the price manages to break above 1.03000 and the MA50 barrier, investors will evaluate the early signals for a change in the price trend again.
The increase will continue towards the resistance of 1.04000 to be tested before continuing to the height reached last week around 1.04800.
