EUR/USD Crawls Slowly Around $1.0700 Level


The US dollar showed slow movement at the beginning of the week as the market focus was more on the Yen currency with possible intervention by the Japanese authorities.

However, the government and the central bank of Japan (BOJ) still have not given any explanation regarding the situation until now.

Investors remain cautiously awaiting the FOMC meeting that takes place early Thursday morning which is expected to have a major impact on the market and price movements.

With a clearer indication of the direction of the Federal Reserve's (Fed) monetary policy, investors will also get an idea of the strength of the US dollar.

Examining the chart of the EUR/USD currency pair, the price is seen to remain hovering slowly above the 1.07000 level at the beginning of the week yesterday.

The highest level reached is only around 1.07300 and the price that continues trading into the Asian session this morning (Tuesday) is seen to be approaching the 1.07000 level which is the support level when making the price.

A move below the 1-hour Moving Average 50 (MA50) barrier line on the chart could signal an early bearish move, but investors will be waiting for a clearer signal.

Market uncertainty at the close of trading this April in addition to facing the FOMC meeting will invite higher risks to investors.

For the expected price increase if it continues, last week's high level around 1.07500 will be challenged for the price to record the latest 3-week high.

The next target for the price increase is towards the 1.08000 zone.

However, if the price is pressed to fall below the 1.07000 level, a bearish trend movement will be expected to occur.

The continued decline will reach the previous support zone at 1.06000.