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Forex pairs in this Article » EUR/USD (Edinburgh) - The EUR/USD is drifting to the mid 1.3600 area as markets in the US session are drawing to a close.

EUR/USD eyes on FOMC

The FOMC gathering will be the outstanding event of the week, with market consensus expecting the Fed to taper its QE programme by $10 billion, and thus giving extra support to the greenback. Eric Green, Global Head of Research at TD Securities, commented, “The market is currently caught between hope of a pause in tapering within a risk-off environment not likely to last and an unemployment rate that is set to fall further. That sets up a possible whiplash in rates over coming weeks”. Data releases in Euroland – German Gfk Consumer Confidence Survey, EMU’s Money Supply and Private Loans – would barely have an effect on price action.

EUR/USD levels to consider

At the moment the pair is down 0.10% at 1.3658 with the immediate support at 1.3615 (10-d MA) ahead of 1.3564 (daily cloud base) and then 1.3530 (low Jan.23). On the upside, a break above1.3716 (high Jan.27) would open the door to 1.3740 (high Jan.24) ahead of 1.3776 (2014 high Jan.2).
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