The US dollar maintained a stable trading performance on Tuesday but showed no significant movement as investors cautiously await the FOMC meeting early Thursday morning.
In the New York session yesterday, US retail sales data showed a positive increase in November with figures beating market forecasts due to the buoyancy of consumer spending during the holiday season.
A clear market trading direction will be determined after assessing the FOMC meeting results and indications of the Federal Reserve’s (Fed) further monetary policy direction.
Observing the movement on the EUR/USD currency pair chart, the price remained flat at the important 1.05000 zone yesterday as per the pattern of the previous day.
A decline below 1.05000 and a move below the Moving Average 50 (MA50) line on the 1-hour time frame on the chart triggers a downside risk.
If the price decline is displayed, it is possible that the zone around 1.04000 can be reached after the price exceeded the level of 1.04530 at the end of last week.
The price will record a new 4-week low and the decline may continue if the US dollar clearly shows strengthening.
However, if the situation is the opposite, the price jumping from the 1.05000 zone will signal a bullish movement again.
The price increase will head towards a height of around 1.06000 to test the resistance zone that has remained a price barrier for several weeks before.
