The price movement for the US dollar is seen to be somewhat mixed ahead of the FOMC meeting that will be the focus in the early hours of Thursday morning, but analysts still see the tendency of the king of the currency towards strengthening.
Risky market sentiment was influenced by a number of stressful factors pushing for a strengthening US dollar, but apart from investors being wary of the outcome of the FOMC meeting, US consumer confidence data published yesterday also gave a weak picture.
The US dollar is seen to still be able to put pressure on several other major currencies in the market, but the strengthening momentum has begun to fade.
As shown on the price chart of the EUR/USD pair, the price is seen still continuing its bearish pattern until Tuesday yesterday with the latest 5 -week low recorded around 1.12640 in the European session.
But continuing trading into the New York session yesterday, the price again showed a rise again with the US dollar depreciating again until the end of the session.
Even so, the price is seen still moving on a bearish trend which is blocked by the Moving Average 50 (MA50) barrier level in the 1 -hour time frame which was also tested in the early trading of the Asian session this morning (Wednesday).
If the bearish pattern continues, the price will continue the decline towards the support zone around 1.12400-1.12500 which was an important zone in last December's trading.
Further decline in prices will test the main support zone in 2021, which is at 1.12000.
If the bearish pattern is successfully broken to signal a bullish trend again, the price resistance zone is seen to be at 1.14000 before a higher rise will lead to the high zone reached a few weeks ago around 1.14800.
