Investors' expectations of a strengthening US dollar were dashed when the performance exhibited on Tuesday yesterday was more gloomy than the pattern of increasing value at the opening of the market earlier in the week.
Market sentiment is still at risk of being overwhelmed by reports of Covid-19 in China with a surge in infection cases, new reported deaths and increased restrictions on movement again.
However, the focus on the minutes of the FOMC meeting to be published early Thursday morning is likely to make investors more wary of the currency king's movements when assessing the mixed views of Federal Reserve (Fed) policymakers.
While the Euro currency is trying to take advantage of the space to rise higher against the US dollar, the price movement displayed is still slow.
European central bank (ECB) policymakers are seen to be more inclined towards monetary policy tightening with an expected interest rate increase of 75 basis points still an option.
If the price movement on the chart of the EUR/USD currency pair is assessed, the price has returned to display an upward pattern again on Tuesday yesterday after the downward pattern on Monday did not continue.
The price is seen to have rebounded from the support level of 1.02400 and tested the level of 1.03000 at the end of the New York session and the price was flat around that until continuing at the opening of the Asian session this Wednesday morning.
After the price rise crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame of movement on the EUR/USD chart, investors considered it a signal for a bullish trend movement again.
If the increase continues, the price will head towards the 1.04000 level to test the resistance before continuing the increase to the 1.05000 resistance zone.
Overcoming the high reached last week would mark the price's latest high for the 21-week trading period.
On the other hand, watch out if the price breaks back below the 1.03000 level and is likely to break through the current support level at 1.02400.
The price can drop to the tumouan zone of 1.01000 after a clearer signal of movement for a bearish trend.
While awaiting the FOMC minutes, the market will first focus on the release of manufacturing and services PMI data in Europe and also America today.
