These Risks For EUR/USD Trading Investors Need To Know

thecekodok

 The movement of the US dollar in early week trading was seen to be somewhat mixed after the strengthening momentum exhibited at the end of last week failed to be sustained.


Investors are wary ahead of the outcome of the FOMC meeting with a 2 -day rally by the Federal Reserve (Fed). The latest policy indicators will be scrutinized by investors through a statement issued by the central bank.


The US treasury yield, which fell back to around 1.60%, also put pressure on the US dollar and drove the currency's monarchy earlier in the week.


Yet the US dollar still managed to trade better against several other major currencies in the market.


Like the movement on the EUR/USD pair chart, the price displayed a bearish pattern after the price hovered around the 1.19600 level in yesterday’s Asian session had fallen lower to the 1.19100 level and moved below the Moving Average 50 (MA50) barrier level on the 1 hour timeframe for bearish trend signals.


Prices moved flat until the end of the New York session and continued into the Asian session on Tuesday morning.



Although several factors are seen to suppress US dollar trading, the price on the EUR/USD chart is still showing a downward trend.


The price will continue to decline lower if it manages to pass the RBS zone (resistance become support) 1.19000 before reaching the level around 1.18000.


If the price manages to jump following a more significant depreciation of the US dollar, the price increase is seen to test the resistance level of 1.20000 in the SBR zone (support become resistance).