A disappointing performance by the US dollar, expectations to continue strengthening after the FOMC meeting faltered as its value significantly eased back in weekend trading.
Investor confidence in the US dollar began to fade following the Federal Reserve (Fed) signaling to re -examine economic stimulus measures for the year.
In addition, market sentiment was seen to begin to recover after concerns over the issue of the Evergrande debt crisis eased. Investors began to relinquish holdings of the US dollar as a safe-haven after being drawn to risky sentiment in the past.
Most of the price movements on the main chart are seen as a surprise for investors, especially on the chart of the EUR/USD currency pair.
Expectations for the price to slide lower after the Fed’s hawkish statement at the FOMC meeting faltered, instead the price rebounded making a rebound past the 1.17000 support zone.
Rising prices hovered again at the weekly resistance level below 1.17500 for the price to continue to test the SBR (support become resistance) zone.
The initial signal of a bullish price movement was evaluated by investors after rising again above the Moving Average 50 (MA50) barrier level in the 1 -hour time frame, however investors are waiting for the price to break the SBR 1.17500 zone for a clearer signal.
A higher rise in the price will head back to the resistance level of 1.18000 which was the focus zone in last week's trading.
Overcoming these obstacles will strengthen analysts' expectations for the price to return to the previous high of 1.19000.
On the other hand, if the price manages to resume its bearish rhythm, the price will move below the support zone of 1.17000 for a lower bearish signal.
The next price focus on the continued decline will be directed at the support zone 1.16000 which will record the latest lows this year.
