The US dollar was seen failing to give a satisfactory performance in opening trade earlier this week after the strengthening displayed at the end of last week.
Investors are likely to be taking precautions against trading risks ahead of the FOMC meeting early Thursday morning.
The outcome of the meeting will determine the direction of price movements for the US dollar more clearly with there expectations for the Federal Reserve (Fed) to tighten their monetary policy.
Examining the price movement on the chart of the EUR/USD currency pair at the beginning of the week, the price is still supported at the 1.17000 zone after the increase was displayed as soon as the price touched the support zone.
The price increase however is not very encouraging with the price movement still below the Moving Average 50 (MA50) barrier level on the 1 hour time frame for a signal to continue the bearish trend.
The decline will still test the 1.17000 support zone so that the US dollar gains the strength to push prices lower.
A lower decline below that zone would expect the price to head towards the next support zone at 1.16000 to record the latest low for the year.
If the 1.17000 zone remains successful in providing support for the rebound price and the price starts to rise past the MA50 barrier, investors will evaluate it as an early indication of a bullish trend change.
A continued rise will first test the resistance at 1.17600 before the price heads to the focus zone at 1.18000 previously.
Price movements are expected to slow down as investors are cautiously awaiting the outcome of the FOMC meeting this week.
