The US dollar continued to trade towards the end of the week after investors reacted to the FOMC meeting earlier this morning.
The Federal Reserve (Fed) is expected to continue to keep the interest rate unchanged at 0.25% while bond purchases will also continue.
With the continued depreciation of the US dollar, it is expected to continue to provide space for other major currencies to continue to strengthen, particularly the Euro.
On the EUR / USD currency pair chart yesterday, the price has managed to jump past the resistance zone 1.21800 to reach the high level of 1.22130 thus recording the latest high level since April 2018.
The surge was also supported by rising European economic data involving the manufacturing and services sectors, particularly in Germany.
But prices are starting to show a reversal in the New York session ahead of the FOMC meeting that investors are looking forward to.
During the FOMC meeting, the price hovered again in the previous resistance zone around 1.21800-1.21500 before the market reaction saw the price move up to the daily low around 1.21270.
However, the price jumped again above the Moving Average 50 (MA50) support level in the 1 hour time frame indicating the trend signal is still bullish.
The momentum of the price increase continued in the Asian session this morning with an increase as of 10.46 am local time to the level reached yesterday.
With the focus still on the US economic stimulus package which puts pressure on the US dollar, price increases are expected to continue towards the latest highs around 1.22500.
If the price decline occurs again, the RBS zone (resistance become support) 1.21800 will be re-tested which will support the price falling lower.
A drop below the zone will signal a bearish price trend to begin.
