Investors are jittery with volatile market turmoil at the end of the week with the results of bank meetings a key focus.
On the chart of the EUR/USD currency pair, investors witness drastic price fluctuations influenced by the market's reaction to the current situation.
After the FOMC meeting, there was a significant decline in the US dollar currency making the price on the EUR/USD chart jump up with a high reached on Thursday yesterday at around 1.09400.
However, the situation began to change in yesterday's European trading session when a shock from the Swiss central bank's (SNB) action that lowered interest rates made it the first central bank to initiate policy easing measures.
The panic that broke out in the market made the demand for the US dollar as a safe-haven currency increase again while reducing the previous losses.
The price has returned to make a dive that continued into the New York session by breaking through the important zone at 1.09000.
Adding a bearish signal when the price moved below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart, the bearish price hit the 1.08550 level at the end of the New York session.
The bearish pattern continued as trading resumed in the Asian session this morning (Friday) to break weekly lows.
The target for the continued price drop is towards the focus zone at 1.08000 which has the potential to be the closest price support.
However, if the breakout price is lower, the target will move to the next concentration level which is 1.07000.
A surge in prices can also be expected to occur if the market's focus returns to the projected easing of the Federal Reserve (Fed) policy.
If there is a rebound in price, the 1.09000 zone will be a resistance to test before a trend change signal is observed.
The next move higher will lead to the zone of elevation at 1.10000 surpassing the previous week's levels that have been reached.
