The market movement on Tuesday yesterday was increasingly chaotic with prices moving up and down in a fairly significant range (volatile) as the throb was felt ahead of the meeting of the main central banks.
The US dollar traded strong in the European session yesterday although there were no factors to support it, but the loss again in the New York session covered the gains made before that.
The answer to the results of the FOMC meeting is expected early this Thursday morning, which will drive the movement of the US dollar before heading towards the release of the United States (US) NFP employment data at the end of the week.
Unlike the Federal Reserve (Fed) with an expected increase of only 25 basis points, the European Central Bank (ECB) is expected to raise interest rates by 50 basis points.
The Euro currency also traded gloomy yesterday when presented with several European economic data releases.
The European economy recorded annual growth of 1.9% better than the expected 1.8%, but on the negative side, retail sales in Germany contracted by 5.3% for last December, worse than forecast figures.
The price chart for the EUR/USD currency pair yesterday saw the price initially drop towards the 1.08000 zone.
As expected to give an interesting reaction, the zone managed to rebound the price up around 70 pips and tested the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the chart.
The direction of price movement is getting harder to predict for investors today as the meeting time approaches.
If the rise continues, the resistance zone at 1.09000 will be tested again after failing to break through earlier in the week and also throughout last week's trading.
If the results of the FOMC meeting prompt a higher jump, the price will reach the target level at 1.10000.
However, if on the other hand a drop in price is exhibited, the 1.08000 zone will be the focus for the price to be targeted once again.
If it succeeds in penetrating lower, the decline will continue towards around 1.07000 by displaying a bearish trend movement pattern.
