Uncertain market sentiment at the start of the corporate earnings reporting season has made investors more cautious to stay in the market.
The US dollar has also been trading flat since the beginning of the week with market sentiment assessed to have recovered following the issuance of positive reports by the Bank of America (BoA) and Goldman Sachs, slightly curbing the previous strengthening of the US dollar.
With the limited movement of the US dollar, the Euro currency is seen to be looking for room to record an increase in the near term.
Also a factor supporting the Euro, the European central bank (ECB) is expected to more aggressively raise interest rates by 75 basis points at the latest policy meeting next week.
Thus, the Euro is considered to have the potential to rise higher towards the end of October if the US dollar remains trading gloomy in the market.
Judging by the price movement on the chart of the EUR/USD currency pair, the price moved more flatly yesterday than the surge pattern exhibited at the beginning of the week.
However, the price trend remains bullish with the price still above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart.
Resistance at the 0.9000 zone has yet to be broken through and the zone is expected to be the focus of testing if the rise continues today.
The increase that passed the resistance will then go to the 1.0000 parity zone after the increase in early October last failed to break through.
However, be alert if the price starts to bounce back below the MA50 support level again for a bearish trend signal.
The next drop below the 0.98000 zone will be to the 0.97000 zone which was the focus of last week's trading.
