Even with the slow momentum, the US dollar is seen to still manage to show strengthening in the New York session yesterday to continue the movement pattern of last week.
Analysts are warning investors to be on the lookout for market volatility ahead of key central banks' policy meetings with the main focus being on the FOMC meeting.
The decision in the interest rate cut by the Federal Reserve (Fed) will determine the direction of the US dollar's movement after this.
Noticed the current price movement on the EUR/USD currency pair chart in a bearish trend in addition to the strengthening that is still displayed by the US dollar until now.
On Monday's trading yesterday, the price was seen testing the 1.09000 zone but the price found it difficult to stay above it before showing a decline in the New York session.
The price reached the 1.08700 level and remained flat around that until the closing trade of the session.
The movement of the price again hovering below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame of the EUR/USD chart signals a tendency for the price to continue its decline lower.
If the decline continues, the 1.08000 level will be hit as an important zone target for price testing.
Lower declines could occur this week if the impact of the FOMC meeting affects price pressure.
However, the price could also bounce back above 1.08000 if the market reaction supports the bullish pattern to take place.
The target is to reach a high at the concentration level of 1.10000 after overcoming the levels achieved in the previous weeks.
