Wednesday, March 19, 2014
Central Bank statements and monetary policy move the markets again after the Federal Reserve released their statement from this week's 2-day FOMC meeting. During today's trading session, the greenback was the true winner as it rallied across multiple asset crosses on the back of a more hawkish Fed. The EUR/USD tumbled for 124 pips from the intra-day high at 1.3934 to support at the intra-day low of 1.3810. The pair is currently in consolidation above this support level, awaiting a breakout during the Asian trading session. We expect to see a continuation of USD strength as Asian & European Bourses open to trade on this news.
In today’s technical analysis video, we describe price action in EUR/USD and identified common areas of support & resistance for trade entry.
Tuesday, March 18, 2014
The EUR/USD was fairly flat, but slightly negative for most of the trading session as investors maintained a neutral stance ahead of tomorrow's FOMC announcement and geo-political risk in Ukraine.
For today, the common currency traded within a 63 pip range, with an intraday high at 1.3943, and the intraday low at the 1.3880 support level. This price action comes on the back of poor German ZEW Numbers, in which the German headline fell below the forecast to 46.6, which applied pressure on EUR/USD.
However, it was the Mixed US Data, with CPI numbers remaining flat, along with slightly weak US Housing Starts and an increase in Building Permits that kept this pair well-supported or contained around the 1.3900 handle.