Market movement was slow on Tuesday trading yesterday with the US dollar flat for several sessions.
Analysts' views are somewhat mixed after digesting the United States (US) NFP employment data report published last Friday.
Some see the Federal Reserve (Fed) expected to stop raising interest rates, and some expect policy tightening by the Fed to continue.
While waiting for the results of the FOMC meeting that will take place next week, market players are likely to take cautious steps this week first.
The US dollar, however, was seen trading strongly against the Euro which was affected by gloomy readings on German factory order data and European retail sales.
If you look at the price chart of the EUR/USD currency pair yesterday, after the slow movement in the Asian session, the price started to show a decrease from the level of 1.07300 to around 1.06700.
However, there was a rebound in the New York session and resumed trading at the beginning of the Asian session this morning (Wednesday), the price slowed at 1.07000.
The Moving Average 50 (MA50) barrier level was also tested which will signal further price movements today.
If the price bounces back down to continue yesterday's decline, the price will test the level reached last week around 1.06400 before heading to the 1.06000 concentration zone.
The latest 12-week low will be recorded and the price could possibly fall to the 1.05000 level if the bearish pattern is maintained.
However, if the price manages to jump above the 1.07000 level and pass the MA50 barrier, it will be an early sign of a change in the price pattern to go up again.
A higher rise is expected to test the 1.08000 level before continuing the climb towards the 1.09000 zone.
