The development of the global banking crisis is still being monitored by the market continuing trading at the beginning of this new week.
Various news stories continue to emerge regarding the crisis, with reports of Credit Suisse being acquired by UBS for $3.23 billion, and incurring losses of over $5 billion.
The US dollar at the end of last week was seen trading weak again after strengthening as the Credit Suisse panic started, but investors remained alert for any changes that could happen this week.
The focus will be on the FOMC meeting early Thursday morning to see if the Federal Reserve (Fed) will raise interest rates when the crisis is hitting the market.
If you look at the price movement on the chart of the EUR/USD currency pair, the price is seen to show an increase again at the close of trading last week.
After on Wednesday the price plunged to the level of 1.05200, a rebound took place before the price closed the last trading session of the week around 1.06800.
A move above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart signals a continuation of the bullish movement, but investors are still monitoring any information that could change the direction of the price.
If the increase successfully continues at the beginning of this week, the 1.07000 level will be overcome before the price reaches the height of last week's level around 1.07600.
Next, a further move higher will see the price test the focus resistance level at 1.08000.
On the other hand, if the price changes its direction showing a decline again, the 1.06000 level is the closest to be tested and if it is broken, there will be an indication of a change in the bearish trend.
A further drop in price if it continues is seen to lead to the support zone at 1.05000 which remains an obstacle to lower prices since July last year.
