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1 May 2013
Forex: EUR/USD remains below 1.3200, FOMC eyed
FXstreet.com (Barcelona) - The shared currency continues to retrace ground from multi-week highs in the vicinity of 1.3240 on Wednesday, trimming earlier gains on softer-than-expected data from the US economy, ahead of the Fed’s meeting.
“The FOMC decision is unlikely to lead to much reaction… However, the recent string of data has been particularly poor, suggesting a sharp slowdown may be at hand. The Fed's characterization of the labour market is also important. Although the FOMC most likely does not have access to Friday's employment report, it may note that the improvement earlier this year is slowing or even stalling”, assessed the research team at BBH.
EUR/USD is advancing 0.14% at 1.3186 and a surpass of 1.3319 (high Feb.25) would then target 1.3343 (61.8% of Feb-Apr slide) en route to 1.3456 (high Feb.14).
On the flip side, support levels align at 1.3162 (hourly low May 1) followed by 1.3120 (hourly high Apr.30) and finally 1.3052 (MA21d).
“The FOMC decision is unlikely to lead to much reaction… However, the recent string of data has been particularly poor, suggesting a sharp slowdown may be at hand. The Fed's characterization of the labour market is also important. Although the FOMC most likely does not have access to Friday's employment report, it may note that the improvement earlier this year is slowing or even stalling”, assessed the research team at BBH.
EUR/USD is advancing 0.14% at 1.3186 and a surpass of 1.3319 (high Feb.25) would then target 1.3343 (61.8% of Feb-Apr slide) en route to 1.3456 (high Feb.14).
On the flip side, support levels align at 1.3162 (hourly low May 1) followed by 1.3120 (hourly high Apr.30) and finally 1.3052 (MA21d).