Forex: EUR/USD takes a breather ahead of Fed
Forex pairs in this Article »
EUR/USD
FXstreet.com (Córdoba) - After rallying toward a 6-day high above 1.3050, the euro lost momentum and has spent the last hours consolidating in a tight range just below as investors await the Federal Reserve decision.
EURUSD extended gains into a third day on Wednesday and touched a high of 1.3052 before finding resistance. However, the subsequent slide was contained by the 1.3030 area and EURUSD is currently trading around 1.3040, still 0.3% above its opening price.
"The 1.31-1.3125 area is the resistance for today, and a test of whether the market will stay bullish after the event risks from Bernanke and the Fed. A break above 1.3125 then exposes the 1.3170 September high", says Fan Yang, analyst at FXTimes. "Above that, we continue a bullish trend started in July from 1.2042, with the 2012-high of 1.3487 in sight".
Meanwhile, Yang notes that at this point, if the market fails to hold above 1.30 after the FOMC-Bernanke risk events, the bullish outlook is still on hold for further consolidation in the short-term.
EURUSD extended gains into a third day on Wednesday and touched a high of 1.3052 before finding resistance. However, the subsequent slide was contained by the 1.3030 area and EURUSD is currently trading around 1.3040, still 0.3% above its opening price.
"The 1.31-1.3125 area is the resistance for today, and a test of whether the market will stay bullish after the event risks from Bernanke and the Fed. A break above 1.3125 then exposes the 1.3170 September high", says Fan Yang, analyst at FXTimes. "Above that, we continue a bullish trend started in July from 1.2042, with the 2012-high of 1.3487 in sight".
Meanwhile, Yang notes that at this point, if the market fails to hold above 1.30 after the FOMC-Bernanke risk events, the bullish outlook is still on hold for further consolidation in the short-term.
Free Annual Reports
