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Forex pairs in this Article » EUR/USD (Córdoba) - Following yesterday's steep decline in the wake of Fed taper move, the EUR/USD is taking a breather, consolidating just below the 1.3700 level.

EUR/USD consolidates below 1.3700

The EUR/USD dropped more than 160 pips in the Fed's aftermath and hit a 2-week low of 1.3649 before the 21-day SMA helped to contain the fall. The pair managed to recover from lows, but with the bounce being capped by the 1.3690 area, it was confined to a phase of consolidation. At time of writing, the EUR/USD is trading at the 1.3675 area, virtually unchanged on the day, having lost 0.5% Wednesday.

EUR/USD technical outlook

"EUR/USD has seen an outside day to the downside, finally failing at the 1.3833 high. In order to alleviate upside pressure further a break below the uptrend at 1.3607 is needed", said Karen Jones, analyst at Commerzbank. "This is also the location of the 55 day ma at 1.3603 and failure here should provoke a return visit to 1.3300/1.3273 recent low, Fibo and 200 day ma".
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