Market movements on Tuesday were still mixed with investors increasingly cautious awaiting the outcome of the FOMC meeting and with several other central banks on Thursday.
The Federal Reserve (Fed) is expected to raise interest rates by 25 basis points, but there are expectations that there will be no increase by the Fed due to the current crisis.
In fact, there are also those who expect a worse scenario, which is a reduction in interest rates (cut rates) may be the Fed's choice.
The US dollar managed to move better against several other major currencies, but failed to beat the Euro.
The Euro excelled to its latest high against the US dollar yesterday following expectations that the European Central Bank (ECB) would continue to tighten monetary policy.
The price chart of the EUR/USD currency pair saw the bullish pattern maintained for the fourth day in a row yesterday with the latest high level being reached around 1.07800.
The price which was initially flat above the 1.07000 level then surged past the height reached last week.
Price movement remaining above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart is still a bullish signal for prices, but investors are wary of any surprises at the FOMC meeting.
If the US dollar remains weak, the price will soar to break through the important level of 1.08000 and record another new high.
After heading towards the 1.09000 level, the price's main target is to re-reach the 1.10000 zone after it was last touched in last February's trading.
However, if the situation changes, the US dollar starts to strengthen and pressure the price to fall back to the level of 1.07000 which became the site of yesterday's increase.
Falling lower and also passing the MA50 support will be an indication of a bearish trend change for the price again with a target of 1.06000 and 1.05000 support.
