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Forex pairs in this Article » EUR/USD
FXstreet.com (Barcelona) - EUR/USD had a turbulent end to yesterdays trading involving a failed test of 1.3800, a decline to an overnight low at 1.3652 before gently climbing into the European session where it is presently trading at 1.6383.

EUR/USD volatility from surprise Fed taper call

EUR/USD was extremely volatile in the immediate aftermath of the Fed’s decision to taper $10bln, droping almost a point in the immediate reaction before recovering to climb and test 1.3800, making a high at 1.3808, before dumping to 1.6383. The failure to break above 1.3800 again, indicates that the level will likely form major resistance in the future. Calculating a Fibonacci Retracement from yesterday’s peak to the overnight low sees spot having tested the 23.6% at 1.3686 this morning before edging back. This morning sees a quiet day for European data with just Eurozone Current Account data, Italian Wage Inflation and a Spanish debt auction making up the lightweight docket.

What are today’s key EUR/USD levels?

Hourly RSI presently sits at 55, climbing from oversold territory, with the hourly 200 SMA at 1.3751 and sloping lower against the 20 EMA at 1.3669 which has a bullish trajectory. EUR/USD bids are reported at 1.3675-70, with more at 1.3655-50 and stops reported just below. Support can be found at the weekly low at 1.3652, and the Asia high at 1.3693 could provide some resistance too. As of trading, spot remains up 0.76% on the month.
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