Market players remain cautious for this week's trades with volatile market sentiment making price movements also risky.
Although the US dollar is expected to have a brighter chance of dominating in the market following the Federal Reserve's (Fed) hawkish decision at the latest FOMC meeting, the currency king has failed to show any brilliance for the time being.
The gains presented at the end of last week failed to continue at the start of this week, on the contrary, several other major currencies have started to rise again against the US dollar.
Judging from the price movement on the chart of the main EUR/USD currency pair, the price which rebounded from the 1.12500 support zone was flat in overnight trading.
The price moved within a 40 pips range overnight with the high level of 1.13000 reached on Monday once again tested and the lowest level of the price is around 1.12600.
There are initial indications for the price to make an increase to a higher level after the price started moving above the 50 Moving Average (MA50) support level on the 1 hour timeframe as a sign of a trend change.
Should the price hike take hold, the high reached last week around 1.13600 is the initial target for the price to test before continuing the advance to the 1.14000 resistance zone as well.
Meanwhile, if the price makes a decline, the 1.12500-1.12400 support zone becomes an important zone for investors to assess after several weeks of successfully supporting the initial price increase.
On the other hand, if the price breaks through this zone, a lower decline is expected to return to the main support zone at 1.12000 which is the lowest price zone for 2021.
