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Forex pairs in this Article » EUR/USD (Edinburgh) - The EUR/USD is printing fresh highs pre-FOMC beyond 1.2860 on Wednesday, advancing almost 100 pips since overnight lows.

EUR/USD all eyes on Bernanke

Market consensus remains biased towards a dovish tone from the minutes, although the FX community expects Chief Bernanke to later bring in some calm to the markets, propping up the recent correction of the pair. Jane Foley, Strategist at Rabobank, assessed, “While we do expect that a stronger US recovery and a better US budget position will support the USD medium-term, depending on how the Fed play its hand this evening it may be that the market will have to wait until later in the year before the USD musters up the strength for another significant leg higher”.

EUR/USD levels to watch

The euro is now up 0.62% vs. the greenback at 1.2862 and a surpass of 1.2898 (high Jul.9) would target 1.2912 (23.6% of 1.3417-1.2755) en route to 1.2916 (high Jul.5). On the flip side, support levels align at 1.2765 (weekly cloud base) ahead of 1.2755 (low Jul.9) and finally 1.2740 (2013 low Apr.4).
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