Uncertain movements at the beginning of the week continue to add to the anxiety of investors in the market which is getting closer to the FOMC meeting this week.
The majority still maintain expectations for the Federal Reserve (Fed) to keep interest rates unchanged at 5.25% at this latest meeting for the first time since January 2022, but any situation can happen.
The US dollar, which moved lower in the European session yesterday, showed its strengthening in the New York session, but it is still early for investors to determine a clear direction of movement.
In contrast to the Euro, the European Central Bank (ECB) is expected to increase interest rates by 25 basis points to 4.00%.
This is seen to give an advantage to the Euro currency to find room to re-increase its value in the market.
If observed on the chart of the EUR/USD currency pair, the price has been moving below the 1.08000 level for this 2-week period, after the previous 3-week fall in a row.
Before the fall, the price had managed to reach the height of 1.10900 in the trading of the end of April and the beginning of May.
In the European session yesterday, the increase was successfully displayed reaching around 1.07900 before the price plunged again in the New York session.
The price that reached around 1.07450 has moved below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart.
The level was retested in continued trading at the beginning of the Asian session this morning (Tuesday) with the price hovering around 1.07600.
In the event of a rebound, successfully overcoming yesterday's highs will push the price to test resistance at the 1.08000 zone.
Passing that resistance then expect the increase to continue towards the concentration zone at 1.09000.
However, if the price chooses the direction to go down, passing the 1.07400 level will show the price going to the 1.07000 level.
A lower drop will change the next target which is in the 1.06000 zone, expected to be the latest support for the price.
Investors are looking forward to the United States (US) inflation data that will be published in the New York session later tonight before facing the FOMC meeting early Thursday.
