The uncertainty that hit the market this week was certainly expected by market analysts following the September FOMC meeting which was in full focus early Thursday morning, at 2am local time.
Expected to have a big impact on the market, the movement of the US dollar currency was also chaotic since last week until yesterday.
At the beginning of the week, the US dollar weakened but recovered yesterday when supported by relatively good US retail sales data for August.
The price movement on the chart of the EUR/USD currency pair continues to be watched which sees a change in the pattern of the king of the currency.
While the Euro has shown recovery since last week after the European central bank (ECB) policy meeting which lowered interest rates, President Christine Lagarde changed her previous statement with a signal that interest rate cuts may not continue at the next meeting.
On the EUR/USD chart, the price is seen to continue to rise in the European session yesterday reaching 1.11450 but was pushed back again in the next session to around 1.11200.
The hovering price movement continues to trade in the Asian session this morning as it is seen testing the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
If the price manages to bounce back up again to make an increase, yesterday's high level will try to be overcome before continuing to rise higher.
The next target is to reach the concentration resistance zone tested at the end of August before that at 1.12000.
Meanwhile, the risk for a price drop is high if the price movement is decreasing below the 1.11000 level which is seen as support when making the price.
If it breaks below that level, the price is expected to reach back to the support zone last week which was tested at around 1.1000.
