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19 Mar 2014
EUR/USD treading water near 1.3900
FXStreet (Edinburgh) - The EUR/USD remains resilient above the 1.3900 handle, as market participants get ready for the FOMC statement due later.
EUR/USD keeps the range
The pair has been trading in a 30-pips range since the opening bell in Europe on Wednesday, looking at the FOMC as the next catalyst for near term direction. “The FOMC outcome is likely to conclude with a further reduction in tapering and some tweaks to the Fed communication strategy today… We think the 6.5% unemployment rate threshold will be ditched and replaced with a more qualitative assessment of labour market and economic conditions. Tapering is priced in so the surprise here revolves around more or less than USD 10 bn. The risk to the USD revolves around the market’s interpretation of changes to forward guidance and the inferences from the Summary of Economic Projections”, commented Shaun Osborne, Chief FX Strategist at TD Securities.
EUR/USD levels to consider
As of writing the pair is losing 0.14% at 1.3914 with the next support at 1.3892 (10-d MA) followed by 1.3879 (low Mar.17) and finally 1.3848 (low Mar.14). On the upside, a break above 1.3935 (high Mar.19) would target 1.3944 (high Mar.18) en route to 1.3948 (high Mar.17).
EUR/USD keeps the range
The pair has been trading in a 30-pips range since the opening bell in Europe on Wednesday, looking at the FOMC as the next catalyst for near term direction. “The FOMC outcome is likely to conclude with a further reduction in tapering and some tweaks to the Fed communication strategy today… We think the 6.5% unemployment rate threshold will be ditched and replaced with a more qualitative assessment of labour market and economic conditions. Tapering is priced in so the surprise here revolves around more or less than USD 10 bn. The risk to the USD revolves around the market’s interpretation of changes to forward guidance and the inferences from the Summary of Economic Projections”, commented Shaun Osborne, Chief FX Strategist at TD Securities.
EUR/USD levels to consider
As of writing the pair is losing 0.14% at 1.3914 with the next support at 1.3892 (10-d MA) followed by 1.3879 (low Mar.17) and finally 1.3848 (low Mar.14). On the upside, a break above 1.3935 (high Mar.19) would target 1.3944 (high Mar.18) en route to 1.3948 (high Mar.17).