30 Oct 2013
EUR/USD flat lining ahead of FOMC
FXstreet.com (Edinburgh) -The EUR/USD remains locked with a narrow range as markets are slowly heading to the FOMC meeting due later.
EUR/USD looks to break the consolidation
The pair paid no attention to releases in the euro area during the morning, showing decent results from the German labour market and overall good gauges from EMU’s consumer confidence and business climate. Despite the FX space expects no major announcements from the Fed, it would surely bring in bouts of volatility. Analysts at TD Securities commented, “The market is hungry for further signals on when tapering will begin, but the statement is unlikely to contain any big changes, which doesn’t point to much of a reaction from the market… The big risk from our perspective is that they reinforce that tapering could happen at any time, in which case the USD would rally”.
EUR/USD key levels
The pair is now advancing 0.14% at 1.3765 with the next resistance at 1.3818 (high Oct.28) ahead of 1.3833 (2013 high Oct.25) and finally 1.3859 (high Nov.11 2011). On the flip side, a break below 1.3727 (MA10d) would expose the psychological level at 1.3700 followed by 1.3662 (low Oct.22).
EUR/USD looks to break the consolidation
The pair paid no attention to releases in the euro area during the morning, showing decent results from the German labour market and overall good gauges from EMU’s consumer confidence and business climate. Despite the FX space expects no major announcements from the Fed, it would surely bring in bouts of volatility. Analysts at TD Securities commented, “The market is hungry for further signals on when tapering will begin, but the statement is unlikely to contain any big changes, which doesn’t point to much of a reaction from the market… The big risk from our perspective is that they reinforce that tapering could happen at any time, in which case the USD would rally”.
EUR/USD key levels
The pair is now advancing 0.14% at 1.3765 with the next resistance at 1.3818 (high Oct.28) ahead of 1.3833 (2013 high Oct.25) and finally 1.3859 (high Nov.11 2011). On the flip side, a break below 1.3727 (MA10d) would expose the psychological level at 1.3700 followed by 1.3662 (low Oct.22).