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EUR/USD re-testing 1.3330

FXstreet.com (Edinburgh) - The EUR/USD keeps the 1.3330/50 range on Monday, as markets remain slightly tilted to the risk-of trade.

EUR/USD creeps lower, Fed’s ‘taper’ looming

It seems that markets are entering the ‘autopilot’ mode ahead of the FOMC meeting on Wednesday, as denoted by the consolidation pattern seen in the last hours. In the opinion of G.Moore and S.Osborne, Strategists at TD Securities, “The tapering-is-not-tightening message that the Fed is trying to get out seems to have been received clearly enough by the markets, dampening yields and allowing stocks to steady after the late May slide. This week, the market’s will focus on the Bernanke’s comments as well as the updated Fed growth/inflation forecasts which may shed a little more light on the likely timing of the tapering start (September is the market favourite)”.

EUR/USD levels

At the moment the pair is losing 0.10% at 1.3335 and a breakdown of 1.3295 (low Jun.14) would open the door to 1.3279 (low Jun.13) and finally 1.3266 (low Jun.12). On the upside, the next hurdle lies at 1.3390 (high Jun.13) ahead of 1.3434 (high Feb.20) and then 1.3456 (high Feb.14).

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