Closed in NY Wednesday at $1.2735, the rate having slipped off post FOMC spike highs of $1.2780 after headlines in the statement said a number of committee members favoured more quantitative easing after the end of Operation Twist. Euro-dollar opened heavy in Asia and slipped on large aussie-dollar sales, the rate however failed to trigger stops through $1.2710. Dip demand led the recovery and extended pullback efforts to $1.2745 after Fed Williams’ comments. Trade continued flat tied to a narrow 10 pip range ahead of the European open. On the topside offers seen into $1.2780 (14 Nov NY spike high), through here opens strong offers at $1.2800, ahead of key techs at $1.2812 (200-day ma). The 5-day ma provides support at $1.2721, behind here and stops set through $1.2710/00. Traders look ahead to data in the US with main highlights from CPI and Initial Jobless Claims, released at 1330GMT.
EasyForexNews Research Team