The US dollar failed to show strengthening on Tuesday's trading yesterday despite the economic data of the United States (US) being published with encouraging readings.
The US consumer confidence survey recorded a good figure beating forecasts and JOLTS data which calculated the number of job offers opened last December was the highest in 3 months.
The horizontal movement of the US dollar is expected to continue for several recent sessions before the market is about to face the FOMC meeting.
Interest rates are expected to be maintained but the follow-up speech by Federal Reserve (Fed) Chairman Jerome Powell is more critical which will be the driver of further market movements.
This will have a significant impact on the US dollar and will display the direction of price movement on the main charts.
Assessing the current movement of prices on the EUR/USD currency pair chart, a clear direction has not yet been identified before the results of the meeting are known early Thursday morning.
If observed, the price decline occurred at the beginning of the week with the support level of 1.08000 being tested but still supporting the price from falling lower.
The price slightly increased on Tuesday's trading yesterday almost to the level of 1.08600, but it was seen to shrink back down on the trading that continued into the Asian session this morning (Wednesday).
A price movement below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart is an early warning for a possible lower drop.
The support level of 1.08000 will be tested again and if the price breaks down, the bearish trend movement will continue and the price will record the latest 7-week low.
The target is to head to the next concentration level which is around 1.07000.
On the other hand, if the price spike happens, breaking the MA50 barrier will see the price heading back to the 1.09000 zone.
The reaction around the zone will be watched and if there is a move higher, the target is for the price to touch the resistance level at the previous height of 1.10000 again.
