The currency market on Tuesday yesterday moved blandly with an unclear direction for the movement of the US dollar in different sessions.
In the Asian and European sessions yesterday, the US dollar weakened continuing the trading pattern at the beginning of the previous week, then managed to display a recovery in the New York session.
Investors remain on the lookout for the latest indication of the Federal Reserve's (Fed) monetary policy, with the next focus being the United States (US) economic growth and the PCE price index.
At this time, investors need to be alert and ready for any surprises that may occur in the market.
Examining the chart of the EUR/USD currency pair, the price has displayed an upward pattern from the 1.08000 zone at the beginning of the week and the increase continued yesterday reaching around 1.08600.
However, a decline was seen in yesterday's New York session for the price to drop back to around 1.08250.
Slow price movement continued trading into the Asian session this morning (Wednesday) and was seen starting to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart.
If the price decline continues, the 1.08000 zone will be tested and the reaction shown will be an indication of the direction of further price movement.
A further decline would be expected towards the next concentration level which is around 1.07000.
However, if the price shows a surge again, the height reached yesterday is likely to be overcome by the price again.
Next, the price is seen to test the resistance at the 1.09000 zone which was also the focus of the previous trading.
