The Euro traded higher against the US Dollar at the start of the week after the German parliament approved a massive spending plan to boost the economy.
Tariff war pressure continued to weigh on the US Dollar as concerns over the impact of the slowdown in growth risked a recession in the world's largest economy.
US retail sales data released on Monday came in weaker than expected, reflecting subdued consumer spending.
In addition, investors remained cautious ahead of the FOMC meeting results early Thursday morning, which are expected to have a major impact on the US Dollar.
Looking at the EUR/USD chart, the price extended its climb on Tuesday to a new high after breaking above the 1.09000 zone earlier in the week.
The rise in prices has reached a new 5-week high of 1.09500, surpassing last week's trading level.
The level became a new resistance for the price where the price retreated back down after testing it.
The price movement above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the EUR/USD chart maintains a bullish signal.
The price hovered slowly in the Asian session this morning (Wednesday) below the 1.09500 level, expecting the resistance to be broken today.
The continued price increase will target the 1.10000 height for the next focus zone.
On the other hand, if the price moves down below the MA50 support and passes the 1.09000 zone, investors should be careful of the early signal for a change in trend.
The price decline could re-approach the current support level of the price which is around 1.08000.
