Last week's trading close saw lackluster market movement as the focus turned to the release of the consumer spending index report in the United States (US).
The US dollar did not show a significant movement in the last trading session of the week even though the data was among those studied by the Federal Reserve (Fed).
Resuming trading at the beginning of this week, the market is expected to remain 'sad' in the mood of cautious investors awaiting the results of the FOMC meeting early Thursday morning.
Interest rates are expected to remain unchanged, but what is of more concern is the next indication by Fed Chairman Jerome Powell after signaling for a recent interest rate cut.
Looking at the movement on the chart of the EUR/USD currency pair last week, the price has displayed a flat movement towards the end of the week.
Although US Gross Domestic Product (GDP) data and the PCE index are published, prices do not provide a clear direction.
Last week's lows were around 1.08300 before leveling off at the end of the week above the 1-hour Moving Average 50 (MA50) support line on the EUR/USD chart.
If this week the price increases, the price will test the resistance at the 1.09000 zone again.
Passing the zone will be a bullish signal for the price to step higher towards the target height of 1.1000.
On the other hand, if the price plunges below the MA50 line, investors will watch out for a price signal that the risk is lower than last week.
The price drop could reach around 1.08000 which was seen as a price concentration zone in early trading last July.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
The chart displayed above uses the SaracenMarkets platform, open your trading account at SaracenMarkets today. – CLICK HERE – START TRADING NOW
