18 Sep 2013
EUR/USD braced for FOMC, 1.3340/60
FXstreet.com (London) - EUR/USD is braced for the FOMC coming up, having climbed to reach a high of over 1.3380 at the start f the week on the Summers noise, the pair has levelled out between 1.3340/and 1.3365/70 on the build up to long awaited and key market events.
Earlier, Eurozone construction output rose 0.3% m/m and Spain's bad loan ratio rose to 11.97% from 11.63% according to the Bank of Spain. All eyes now shift to the Fed for the next sharp move”. Greg Anderson, strategist at BMO explained “The market has been looking forward to this FOMC decision since the Minutes of the May 1st meeting contained concrete hints that the FOMC was looking at reducing its monthly QE quantity from the present $85bn per month ($40bn mortgage-backed agency securities, $45bn US Treasuries). Every data point and every speech by a FOMC participant has been interpreted with regards to how it might change the odds of the Fed tapering at this meeting…the mix of data has come in inconclusive, so that the decision on whether or not to taper in September will be a difficult judgment call for every FOMC member”.
EUR/USD Levels
The 20 DMA reads 1.3282, the 50 DMA reads 1.3263 and 200 DMA is 1.3159. RSI (9) reads 62. Supports are ascending from 1.3250, 1.3325 and 1.3337. Spot is currently 1.3356 while resistances are 1.3370, 1.3385, 1.3410 and 1.3427.
Earlier, Eurozone construction output rose 0.3% m/m and Spain's bad loan ratio rose to 11.97% from 11.63% according to the Bank of Spain. All eyes now shift to the Fed for the next sharp move”. Greg Anderson, strategist at BMO explained “The market has been looking forward to this FOMC decision since the Minutes of the May 1st meeting contained concrete hints that the FOMC was looking at reducing its monthly QE quantity from the present $85bn per month ($40bn mortgage-backed agency securities, $45bn US Treasuries). Every data point and every speech by a FOMC participant has been interpreted with regards to how it might change the odds of the Fed tapering at this meeting…the mix of data has come in inconclusive, so that the decision on whether or not to taper in September will be a difficult judgment call for every FOMC member”.
EUR/USD Levels
The 20 DMA reads 1.3282, the 50 DMA reads 1.3263 and 200 DMA is 1.3159. RSI (9) reads 62. Supports are ascending from 1.3250, 1.3325 and 1.3337. Spot is currently 1.3356 while resistances are 1.3370, 1.3385, 1.3410 and 1.3427.