Market movements in the past week remained flat as investors remained cautiously awaiting important data and the results of the meeting of the main central banks this week.
The main focus this week will be the FOMC meeting for investors to get answers on whether the Federal Reserve (Fed) will really continue to slow its interest rate hikes.
Interest rates are forecast to be raised to 25 basis points, lower than at the December 2022 meeting.
The US dollar will trade under pressure this week if the Fed further slows policy tightening, plus expectations for a gloomy US NFP jobs data report at the end of the week.
The Euro currency will also steal the spotlight with the reaction to the results of the European Central Bank (ECB) meeting with an expected increase in interest rates by 50 basis points to 3.00%.
If you look at the movement of both currencies on the EUR/USD pair chart, the price remained flat throughout the past week with an increase blocked at the 1.09000 resistance zone.
Testing the height level of 1.09200, the price declined again and continued to move in the zone range of 80 to 90 pips of the price.
At the end of last week, the price started to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart, signaling the beginning of a bearish price movement.
However, with the expectation that the US dollar will continue to weaken this week based on the reaction of the FOMC meeting and the NFP employment data, the price is likely to break above the 1.09000 resistance zone and continue the previous bullish trend.
A higher-driven rally will push the price towards a recent target around 1.1000 for a recent 9-month record high.
On the other hand if the increase fails to happen, the decline will see the price retest the support zone at 1.0800 which will give an interesting reaction in that important area.
If the breakout is lower, a more obvious bearish movement will push the price towards previous focus levels such as 1.07000 or lower at 1.06000.
