Early -week trading for the US dollar looked somewhat gloomy as it moved weaker against most major currencies while investors were cautious ahead of the FOMC meeting early Thursday morning.
Indications by the Federal Reserve (Fed) on policy tightening measures by reducing bond purchases or maintaining a loose policy, will determine the direction of the next market movement.
Meanwhile, the development of Delta variant Covid-19 infection continued to be monitored after signaling a slow global economic recovery.
The declining performance of the US dollar has given room for the Euro to move better even as business survey data in Germany recorded declining readings published in the European session yesterday.
The price chart of the major EUR/USD currency pair on Monday saw the bullish pattern re -climb slowly to cross the 1.18000 level.
The daily rise of around 50 pips was seen re -testing the highs that the price tested last week.
If the price manages to maintain the bullish pattern after the FOMC meeting, the resistance zone at 1.19000 will be tested after the price fell below that zone for the past 3 weeks.
A higher rise above the zone will then target the next focus resistance level at the 1.2000 high.
On the other hand if the price plunges back below the 1.18000 level, last week’s support level around 1.17500 will be tested again.
Next, the support zone at 1.17000 will be the focus of the price decline which is still continuing to record the latest low since April.
