Investors are expected to start to be wary of market movements at the beginning of this week, especially for the US dollar which will rise at the end of the week.
The focus will be on the FOMC meeting early this Thursday morning to address the issue of the increase in utility rates that will be implemented by the Federal Reserve (Fed).
With the expectation of an increase in the benefit rate of 75 principals for the third time in a row, there is even an expectation that an increase of 100 principals will certainly have a significant impact on the US dollar.
Therefore, the analyst expects drastic price movements to occur on the EUR/USD currency pair chart this week.
Since the end of last week, the price has been moving in a flat zone at the parity level of 1.0000 with the level of support at 0.99500.
The price slightly broke the 1.0000 level at the close of trading last Friday and continued at the market opening earlier in the week in the Asian session, the price eased slowly above that level.
This is an early clue to the start of a price bullish pattern on the EUR/USD chart, but it's still early for investors to rate while waiting for clearer clues.
If the price manages to continue to move above the 50 Moving Average (MA50) support level on the 1-hour timeframe on the EUR/USD chart, it is likely that higher gains will continue if the US dollar experiences depreciation.
For the upside, the price jumping from the 1.0000 parity level will head to the initial hurdle at 1.01000 before hitting the highs reached last week.
Breaking the next 1.02000 level will push the price up further to the support level around 1.03000 as well.
On the other hand, if the US dollar has started to strengthen ahead of the FOMC meeting, there will be another decline in prices, breaking the 1.0000 parity level and 0.99500 support which was the focus last week.
The slide lower will head towards the 0.98800 support zone which was tested in early September trading.
