The market kick-off at the beginning of the week still saw mixed and more risk-on sentiment as investors continued to digest the development of the banking crisis with a focus on the Credit Suisse issue.
Credit Suisse has been bought by its rival UBS for $3.2 billion after previously rejecting a $1 billion buyout offer.
Several major central banks including the Federal Reserve (Fed), European Central Bank (ECB), Swiss National Bank (SNB) and others have formed a coalition for coordinated intervention measures, aimed at stimulating the flow of US dollars in the financial system of investors.
The US dollar was seen to remain trading weak on Monday yesterday while investors will await the results of the FOMC meeting early Thursday morning.
The Euro currency successfully traded higher against the US dollar supported by ECB President Christine Lagarde's speech in parliament that inflation is seen to remain high for a longer period, hinting at policy tightening.
Examining the price chart of the EUR/USD currency pair at the beginning of the week, the price maintained a bullish pattern since it was displayed at the end of last week.
A brief decline at the beginning of the European session tested the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart around the 1.06400 level before the price surged and broke through the concentration level of 1.07000.
The price then flattened at the height of 1.07300 which was reached until the end of the New York session.
If the price still manages to maintain the rising pattern, the price will continue to rise to overcome last week's height around 1.07600 before heading to the 1.08000 zone.
If the US dollar remains weak, prices will continue to make gains to record new 7-week highs.
However, on the other hand, if the situation changes and the US dollar strengthens, pushing the price down, investors will watch for signs of a change in trend.
The price that breaks below the 1.07000 level will try to break through the MA50 support before starting to plunge to lower levels.
The initial target is at 1.06000 before the price continues its decline and will head to the main support zone at 1.05000.
