The pair consolidated gains throughout the US afternoon to close in NY Tuesday at $1.3395. The rate had earlier recovered off intraday lows of $1.3338 to take out the $1.3400 barrier on demand in the crosses from model type accounts. Profit take supply pared light gains, before fresh bids re-emerged, extending to 4 month highs of $1.3416. Rate later settled in a tight range with focus clearly on the FOMC decision and press conference from Bernanke where many do not expect this to show any greater tendency towards tapering. Early Asian demand lifted the pair back above $1.3400 to $1.3402, but with lack of follow through and traders on the sidelines euro-dollar drifted lower. Rate found support ahead of $1.3385 and settled in a tight 10 pip range for the remainder of the session. On the downside bids are reported at $1.3380/70 ($1.3374 – 5-day ma), more at $1.3350/40, ahead of $1.3325/20 ($1.3325 – 18 Jun low). Small sell are orders are seen through $1.3410, behind here and stops set on a break of $1.3420/25.
