Investors will be wary of the movement of the US dollar earlier this week while awaiting the outcome of the FOMC meeting early Thursday morning which is expected to be a market highlight.
Investors have yet to see a clear direction for policy setting by the Federal Reserve (Fed) with conflicting opinions on whether to implement asset purchase reductions or continue to maintain a loose policy.
Fed Chairman Jerome Powell previously remained adamant for a loose policy despite the US inflation rate recording an encouraging increase.
The performance of the US dollar last week was seen to be somewhat mixed after a weak movement was displayed over the weekend versus an advantage at the beginning of the week.
On the chart of the EUR/USD currency pair, the price is flat in the price zone around 50-60 pips over the last week supported at the level of 1.17500.
Although the price moved below the Moving Average 50 (MA50) barrier level last Friday for a bearish trend signal, it still has not passed below the 1.17500 level.
Trading earlier this week saw the price still moving slowly slightly up testing the 1.17800 level.
If the price manages to break above the 1.1800 level, higher upside expectations will be continued to head up to the resistance zone at 1.19000 previously.
On the other hand, for the bearish situation, the 1.17000 support zone will be tested again and investors want to see if the zone can support the price increase as in April.
Keep an eye on the European economic data, especially in Germany, which will be published this week and is likely to affect the movement of the Euro currency.
