Financial market movements remained flat since the start of the week on Tuesday yesterday while investors remained cautious ahead of the central banks meeting on Thursday tomorrow.
The US dollar has not yet given a clear direction with the strengthening exhibited again after the previous decline with the yield of the United States (US) treasury still hovering at a high level reaching the level of 3.60%.
But it is not impossible for the US dollar to decline again or show a more drastic strengthening after this.
The Euro currency is trading weak again after the strengthening shown by the US dollar yesterday to repress the price below the $1,000 parity level (€1=$1).
If the price chart of the EUR/USD currency pair is scrutinized, the bearish pattern was displayed again on Tuesday yesterday after the price failed to move higher past the 1.0050 level.
However, the decline in price that has passed the parity level of 1.0000 has not yet managed to break through the price support level at 0.99500 which remains to prevent further price falls since last week.
Even so, investors need to be alert for further declines as the price moves back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart, indicating the initial signal of a bearish movement.
If the price continues its decline and succeeds in breaking through the support level of 0.99500, the latest 2-week low will be recorded with a price drop target to reach the main support zone at 0.98800.
The 0.98800 level became the lowest price record in 20 years, that is since 2002 after the decline to that level in early September.
However, if the price starts showing a surge again, passing the parity level of 1.000 and the MA50 barrier will signal a change in the price trend.
The upside is likely to attempt to overcome yesterday's highs at 1.05000 before an extended rally is seen heading towards the 1.01000 concentration level.
A higher rise will also test the level around 1.01600 and last week's resistance at 1.02000.
