EUR/USD Flat in the $1.0600 Zone, Will There Be a Surprise Awaiting?


 The surprise by the Bank of Japan (BOJ) after yesterday's monetary policy meeting also had an impact on the global market causing panic.

However, the situation calmed down after a few sessions with the price movement of the main currencies slowing down again, except for the Yen which showed significant strengthening.

The US dollar is still not showing a clear direction of movement since the beginning of the week after the initial strengthening was exhibited at the end of last week following the FOMC meeting.

Like other major pairs, the price chart for the EUR/USD currency pair is still exhibiting a horizontal movement making investors remain alert for any surprises.

The level of 1.06000 is still seen as a support zone for the price when the price remains in that area with a price movement range of around 70 pips yesterday with a height reached at 1.06600.

A slow price movement above the Moving Average 50 (MA50) support level on the 1-hour time frame signals that a bullish move is likely to be displayed after this, but investors are still waiting for a clearer signal.

In the event of a surge, the resistance at the 1.07000 zone will be the focus to be tested again as in last week's trade.

Breaking the zone will record the latest 6-month high with the next target at 1.08000.

However, if the price breaks lower below the 1.06000 zone and moves below the MA50, investors are ready for a price drop after examining bearish movement indicators.

The decline is expected to continue to around the 1.05000 zone before the price reaction in that zone will be evaluated for further price movement indicators.

Continuing the downward pattern, the price that passes 1.05000 will test the lower concentration level around 1.04000.