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19 Jun 2013
EUR/USD remains anchored to 1.3400
FXstreet.com (Edinburgh) - The EUR/USD is prolonging its congestion pattern on Wednesday, against the backdrop of the prevailing dullness pre-FOMC.
EUR/USD vs. Fed’s ‘tapering’
Lack of direction continues to prevail amongst traders as any attempt of setting a trade would be tilted as adventurous ahead of the Fed gathering and press conference by Chairman Bernanke. In the view of G.Moore and S.Osborne, Strategists at TD Securities, “We expect the Fed message to embrace the idea that tapering is likely in the not-too-distant future (if the data supports this) but to stress that tapering is not tightening. This is perhaps a distinction without much of a difference for the markets, however. We look for the USD to gain traction on a tapering message”.
EUR/USD levels to watch
At the moment the pair is up 0.08% at 1.3403 and a break above 1.3411 (high Jun.19) would target 1.3416 (high Jun.18) en route to 1.3456 (high Feb.14). On the downside, support levels align at 1.3338 (hourly low Jun.18) ahead of 1.3326 (MA10d) and finally 1.3325 (low Jun.18).
EUR/USD vs. Fed’s ‘tapering’
Lack of direction continues to prevail amongst traders as any attempt of setting a trade would be tilted as adventurous ahead of the Fed gathering and press conference by Chairman Bernanke. In the view of G.Moore and S.Osborne, Strategists at TD Securities, “We expect the Fed message to embrace the idea that tapering is likely in the not-too-distant future (if the data supports this) but to stress that tapering is not tightening. This is perhaps a distinction without much of a difference for the markets, however. We look for the USD to gain traction on a tapering message”.
EUR/USD levels to watch
At the moment the pair is up 0.08% at 1.3403 and a break above 1.3411 (high Jun.19) would target 1.3416 (high Jun.18) en route to 1.3456 (high Feb.14). On the downside, support levels align at 1.3338 (hourly low Jun.18) ahead of 1.3326 (MA10d) and finally 1.3325 (low Jun.18).