Speculation for Federal Reserve (Fed) Chairman Jerome Powell to push talks on reducing bond purchases at this week’s FOMC meeting continues to put pressure on U.S. dollar trading.
The depreciation of the US dollar has left room for the Euro to strengthen to a nearly 2 -month high ahead of business sentiment data in Germany in today’s European session.
Moreover, the Euro is seen to continue its strengthening momentum after manufacturing and services sector data in Europe published last weekend recorded a good reading overall.
Examining the price movement on the chart of the EUR/USD currency pair, after the price dropped to the level of 1.20000 following the decision of the European central bank meeting, the price rose again and managed to reach the high of 1.21000 at the end of last week's trading.
Still moving above the Moving Average 50 (MA50) support level on the 1 -hour time frame of the price movement for a bullish trend signal, investors are placing hopes for the price to continue rising higher this week.
The next expectation is seen to be heading towards the resistance zone around 1.21500-1.21800 to hit the latest 9-week high on the EUR/USD chart.
However, if the price falls again below the zone 1.20900-1.20600, the price will return to the support level of 1.20000 which is in the RBS zone (resistance become support).
Investors will be vigilant this week and focus on the outcome of the FOMC meeting that will affect US dollar trading.
