The market seems to have already received a shock from the publication of the annual inflation data of the United States (US) recorded an encouraging reading which is the highest record since 1982 although the monthly inflation reading in November decreased slightly.
However, profit -taking activity over the weekend completely hampered the USD to strengthen and investors are also expected to be wary of the FOMC meeting.
A clear anticipation for the Federal Reserve (Fed) to complete plans in tightening policy earlier is expected to the FOMC meeting to be held on Thursday morning.
It seems that the price on the chart of the EUR/USD currency pair climbed again in last weekend's trading (Friday) to once again test the SBR (support become resistance) zone of 1.13000.
The climb was also seen to start reacting during the beginning of the New York session on Friday at the time of the release of US inflation data in producing a jump of around 60 pips to return to close higher trading.
But the price movement does not seem to be able to soar more violently through the SBR zone 1.13000 to decline again until the continuation of the early trading opening of the Asian session today (Monday).
Investors are likely to see price reactions in the SBR zone before expecting a downtrend and are expected to test the resistance trendline as well as the 1.12000 support zone first.
That is, a lower decline will push the price movement to track the lowest level since July 2020 before the high probability for the price to create another new low.
However, if the price returns to record a surge in making a price correction, investors are expected to see the price reaction beyond the SBR 1.13000 zone to reach the SBR 1.14000 zone.
The next surge will await the price movement towards the SBR 1.15000 zone again which was also the strongest support zone in October and November recently.
