Trading at the beginning of the week started slowly with the absence of major economic data and the American market was also closed.
Thus, investors have yet to see the direction of price movements, especially for the US dollar currency yesterday after the end of the FOMC meeting last week saw interest rate hikes have begun to be stopped by the Federal Reserve (Fed).
The US dollar has moved weakly to end the week's trade, but market analysts are waiting for any new signs of US dollar strengthening following the Fed's signal that interest rate hikes will happen at least twice towards the end of 2023.
If it happens, the US dollar will again put pressure on most other major currencies that are taking advantage of the opportunity to rise for now with central banks acting to continue raising their interest rates to fight inflation.
As the European central bank raised interest rates last week, the Euro managed to surge to a 5-week high against the US dollar. But the situation can change at any time.
If observed on the chart of the EUR/USD currency pair, the price moved horizontally throughout Monday yesterday in a range of 30 pips between 1.09100 to 1.09400.
However, the price movement that began to be below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart gave an early signal that a change in the price trend could occur.
If the price starts to show a decline today, investors will be ready to see the price go back to the previous concentration zone at 1.08000.
A move lower expects the price to test the level around 1.07000 which has been the support level for the price in the past weeks.
On the other hand, if the price surges to continue the bullish pattern of last week, the price increase will cross the MA50 barrier again and further towards the 1.10000 target.
In fact, the price could rise higher if the US dollar remains weak and the price registers the latest 6-week high with the next target around 1.10700.
