The Euro currency is seen to have managed to show an improvement against the US dollar in early trading yesterday while the market's focus is on the FOMC meeting early Thursday morning.
Investors are seen to be more cautious as they await the results of the FOMC meeting, making the movement of the US dollar remain gloomy, opening up space for other major currencies to trade higher.
The rise of the Euro, however, is seen to be limited following the release of German business climate survey data which recorded a drop to a 2-year low due to the energy crisis and gas supply risks in Europe.
US consumer confidence data will be the focus of today's New York session which is seen to drive the movement of the US dollar and the Euro.
The price chart of the EUR/USD currency pair was seen to be still moving in the horizontal zone on Monday yesterday with a rising price pattern displayed.
The rising price again tested last week's resistance zone around 1.02500 before declining again, but still signaling a bullish move with price moving above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart.
Continuing early in the Asian session on Tuesday morning, weak price gains were on display and tested again yesterday's resistance to continue moving higher.
If it continues successfully, the target is to reach the high level at 1.03000 and the bullish movement maintained by the price will target the resistance zone of 1.04000.
On the other hand, if the price starts to pull back and move below the MA50 level, the initial support level at 1.01600 will be targeted and investors will evaluate the price reaction in that vicinity for further indications of movement.
For the continued lower price drop, the price will test the RBS (resistance become support) zone at 1.01000.
And then, the main support zone at 1.0000 will come back into focus after the price dropped to that area in mid-July trading.
