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Forex pairs in this Article » EUR/USD (Chicago) - EUR/USD was close to breaking below the 1.3570 zone to finally give in the zone and hit grounds around 1.3562.

IMF, Draghi, FOMC

With a country that is politically divided, there would be no surprises if Yellen, Obama’s election, faced opposition to get appointed as the new Chairman of the Federal Reserve. But with a Senate blue on its majority, there should be no major altercations. Amid red equity markets throughout the world due to US debt deficit deadline and a political shutdown that started a week ago, market participants manage their risk. Jim Langlands, from FXcharts, explains the pair’s outlook for today stating “the IMF is also getting in ahead of the curve and has downgraded the world growth outlook, saying it now expects growth of 2.9% this year, down from 3.1% in July. It also expects growth of 3.6% in 2014, down from 3.8%. On top of this, the chief IMF economist warned that a prolonged failure to raise the U.S. debt ceiling would “almost certainly derail the recovery”, and warned the U.S. to slow the pace of its deficit reduction program. Most players now seem to think that it will be January at the earliest before tapering can begin.
Today’s hope for some direction in the EUR/USD will come from a speech by Mario Draghi, and then later in the day we get the FOMC Minutes which will be keenly watched as they will relate to last month’s meeting, when the Fed shocked the market by failing to provide a date for tapering their economic stimulus.”

EUR/USD Technical Levels

Technically speaking, the pair is offered at 1.3575 and navigates between supports aligned at 1.3568 (September 19th highs), 1.3536 (September 25 highs) followed by 1.35 (October 1st lows) and the resistances set at 1.36 (October 2nd highs), 1.3646 (October 3rd highs) followed by 1.3715 (January 31st highs). Reported as slightly bullish on one-hour timeframe analysis by the, the pair trades above the EMA20.
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