The main focus of the market this week is directed to the FOMC meeting for investors to assess the latest indications of interest rate cuts by the Federal Reserve (Fed).
The US dollar, however, has shown its initial strengthening amid a cautious market environment in addition to being supported by the release of economic data from the United States (US) with good readings.
JOLTS job and consumer confidence survey data came in with positive readings that supported the strengthening of the US dollar at the start of yesterday's New York session.
But towards the end of the trading session, the currency king lost his momentum again.
If observed on the EUR/USD chart, the price was pressed lower yesterday and was seen testing the important level at 1.08000.
Once again, the price showed a reaction around that when it bounced back after the price plunge failed to continue.
The slow rise that continued in the Asian session this morning (Wednesday) to around 1.08200 is seen still hovering below the 1-hour Moving Average 50 (MA50) barrier line on the EUR/USD chart and is expected to test it.
If the price is subdued again, the 1.08000 level will be approached again.
Breaking lower down will trigger expectations for further price declines to occur.
The target is for the price to go up to around 1.07000 anyway.
However if the price manages to bounce back strongly after breaking through the MA50 barrier, the upside has the potential to head back to around 1.09000 and test the resistance zone.
Price movements are expected to be driven by the release of data in the New York session tonight such as the ADP employment data before the market will be shaken by the FOMC meeting early Thursday morning.