EUR/USD Crawls Slowly Ahead of ECB & FOMC Meetings


 The movement of global financial markets at the opening of the early week yesterday was seen as uncertain as investors became increasingly cautious in anticipation of the turmoil that will hit throughout the week.

Apart from inflation data and economic growth, the main focus will be on the meeting of central banks involving the Federal Reserve (Fed), Swiss National Bank (SNB), Bank of England (BOE) and also the European Central Bank (ECB) on Thursday.

The US dollar failed to provide a clear direction of movement on Monday trading yesterday when it initially weakened in the European session before strengthening again in the New York session.

If you look at the movement on the EUR/USD currency pair chart, the price is still moving in the horizontal zone like at the end of last week.

Hovering above the 1.05000 zone at the beginning of the Asian session, the price then showed an increase of around 70 pips before falling back towards 1.05000.

The price drop again made the price move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart which had previously been broken.

Continuing on the trade in the early Asian session this morning (Tuesday), there were weak gains on display to see prices test the MA50 barrier.

For the expected price increase, the resistance zone at 1.0600 will be the focus that has not been successfully broken since last week.

If it breaks through this week, the price will record the latest 6-month high with the next target to reach around 1.07000.

However, if a decline occurs, the support level at 1.05000 will first be tested before giving a signal for a bearish trend movement.

The continued decline will push the price to drop to around 1.04000 before the lower target is to the 1.03000 zone.