Closed in NY at $1.3218 after rate had been bounced from session lows of $1.3173 to $1.3234 as market reacted to FOMC statement (viewed hawkish) the Fed Bernanke’s press conference (viewed dovish as left open the use of QE3). Rate initially marked overnight lows at $1.3217 before edging higher, the move up influenced by early demand for EUR/JPY, the rate again meeting stiff headwind supply above $1.3230 as it faltered at the NY high of $1.3234. Reversal lower in EUR/JPY led EUR/USD back to retest lows before settling around $1.3225. Light data calendar, EMU confidence indexes due at 0900GMT the main interest, but with nothing due from the US could favour risk, or least act to provide ongoing buoyancy. Offers remain in place toward $1.3240, with further interest noted toward the reported barrier at $1.3250. Stops now seen placed on a break of $1.3255. Support remains back at $1.3180/70, with stops below, with interim interest seen at $1.3195/90.
EasyForexNews Research Team