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18 Dec 2013
EUR/USD drops a point on FOMC taper call
FXstreet.com (Barcelona) - EUR/USD has seesawed through todays trading, posting a morning high at 1.3778, before declining to a low of 1.3772, then climbing to 1.3773, before dropping a point following the Fed’s declision to taper $10bln.
EUR/USD collapses in immediate FOMC aftermath
Today started with mixed German IFO data, and news that the EU had come to a provisional agreement on creating a banking backstop. COmments from Merkel stating that Germany had a responsibility to Europe, and that struggling nations would get support to meet their economic targets also weighed on sentiment. The FOMC held rates at 0.25% but took the decision to trim $5bln each from MBS and Treasury purchases per month, causing a sharp move lower in the immediate aftermath. Spot fell to post a fresh weekly low at 1.3702, but has recovered to trade at 1.3740.
EUR/USD Technicals
Hourly RSI sits at 42, with ADX at 14. The FXstreet.com proprietary OB/OS Index and Trend Index are neutral and strongly bearish respectively. Meanwhile the hourly 200 SMA sits at 1.3750 and is sloping higher, alongside the daily 20 EMA at 1.3666. Today’s pivot point can be found at 1.3757, with upcoming support and resistance can be found at 1.3729 (S1), and 1.3791 (R1).
EUR/USD collapses in immediate FOMC aftermath
Today started with mixed German IFO data, and news that the EU had come to a provisional agreement on creating a banking backstop. COmments from Merkel stating that Germany had a responsibility to Europe, and that struggling nations would get support to meet their economic targets also weighed on sentiment. The FOMC held rates at 0.25% but took the decision to trim $5bln each from MBS and Treasury purchases per month, causing a sharp move lower in the immediate aftermath. Spot fell to post a fresh weekly low at 1.3702, but has recovered to trade at 1.3740.
EUR/USD Technicals
Hourly RSI sits at 42, with ADX at 14. The FXstreet.com proprietary OB/OS Index and Trend Index are neutral and strongly bearish respectively. Meanwhile the hourly 200 SMA sits at 1.3750 and is sloping higher, alongside the daily 20 EMA at 1.3666. Today’s pivot point can be found at 1.3757, with upcoming support and resistance can be found at 1.3729 (S1), and 1.3791 (R1).