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Forex pairs in this Article » EUR/USD (Barcelona) - The bloc currency is trading in the upper end of today's range, printing fresh highs in the area around 1.3030 ahead of the FOMC statement due in the European evening. According to market consensus, the Fed would incur in more easing after it announces outright purchases of Treasuries worth $45 billion once 'Operation Twist' is over, to be added to the actual MBS purchases of $40 billion.

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, "the rebound from 1.2880 28th November low is viewed as corrective. We look for rebounds to be contained by the 1.3021/235 end of October highs. We note the TD perfection set up on the 240 minute chart and favour failure here for a slide back to the 1.2880/76 support".

Adding to the bullish momentum in the cross, Chief Analyst Allan von Mehren at Danske Bank, comments "We expect the additional Treasury purchases to be in the range of USD30-45bn with the most likely outcome being the full USD45bn& This will have a negative impact on the dollar and we look for a move higher in EURUSD".

In the same line, Strategist Geoffrey Yu at UBS keeps the bullish outlook on EURUSD, arguing "A break above 1.3032 would extend the strength to critical resistance at 1.3127. Support lies at 1.2929 ahead of 1.2877".
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