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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (San Francisco) - It's the uncertainty, stupid! Wait and see, risk aversion or just the market is tired of Fed sending mixed signals. That's all. The Dollar performed higher against most rivals on Tuesday as investors traded out of risk.

As Chief Analyst Valeria Bednarik commented in a recent report "not only FED officials continued to send mixed messages regarding the future of the economic policies, but the possibility of a government shut down on October, and how to avoid a default before the debt ceiling rise dead line, October 18th, weight all over markets."

The EUR/USD closed its third negative day on Tuesday with the USD winning the battle of the 1.3500 area today. The Euro finished at 1.3470, 0.17% down on the day against the US Dollar with the short term perspective slightly bearish according to the trend index in the 1-hour chart.

The Sterling closed at 1.6000 against the USD after visiting the 1.5955, lowest since the Fed non taper day. The USD/JPY closed lower for third day at 98.75 but holding the 98.50 key support. Note that a decisive break below 98.50 could send the pair to 98.27 (Sep 2 low) en route towards 98.00 (psychological level).

On stocks, Wall Street couldn't sustain its recovery from a negative opening and the major indexes posted losses for fourth day in a row. The S&P closed below the 1,700 level, still far from the 1,660 dynamic support. On commodities, the crude oil extended its decline from 108.38 and tested the 102.50 support. Oil closed its fourth negative day at 103.25.

The gold has just closed a positive daily Long-Legged Doji candle, signaling indecision about future direction but some increasing bullish pressure in the in short term. The XAU/USD wrapped up the session at 1,323, after reaching lows at 1,306 and highs at 1,323.

Main headlines in the American session

Canada: Retail Sales expanded 0.6% in July

OECD: Eurozone remains a source of risk

US: Housing Price Index climbes 1% in July

US: S&P/Case-Shiller Home Price Indices increase 12.4% in July

US: Consumer Confidence falls to 79.7 in September

US: Richmond Fed Manufacturing Index drops to flat in September

Obama tells UN that strike on Syria off the table for now

Wall Street declines for fourth day as digestion of the Non taper decision
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