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Overall, the currency market traded under the influence of the FOMC statement on Wednesday. The major currencies showed some signs of strength during the first part of the day, but as the market was heading into the FOMC release, the dollar gained more strength. The dollar index advanced 0.70 points on Wednesday, almost paring the declines seen one day ahead. 

The Euro (Eur/Usd) showed very few signs of strength throughout the London open, but shortly afterwards, the euro started heading lower. By the late U.S. session, the euro dropped nearly 180 pips, which caused the euro to break below the support trend-line again that connects the 06.03 and the 06.08 lows.

The Pound (Gbp/Usd) traded in similar fashion with the aussie on Wednesday, something that happens very rarely. The pair surged 150 pips throughout the first part of the day, but then reversed every pip gained earlier. Over the last few trading days, the pound traded in a very large side-ways channel, which usually denotes traders’ indecision. 

The Aussie (Aud/Usd) saw a lot of strength during the first part of the day, but started heading lower during the late U.S. session. The downside move came as the dollar strengthened across the board in the currency market, something that caused the aussie to reverse every pip gained earlier. 

The Cad (Usd/Cad) had a relative weak trading day on Wednesday, as crude oil was unable to move anywhere decisively. The pair fell down to the 1.1425 support area during the European session, where it spent an important part of the day trying to break lower. However, the breakout never came, something that made the pair reverse every gain made earlier. 

The Swissy (Usd/Chf) had very thin volume during the Asian and the early European session. However, the swissy surged nearly 400 pips during the second part of the day, as it seems the Swiss National Bank intervened in the currency market in order to weaken the currency. Over the last few months, the SNB has been commenting in almost every public speech about the Swiss Franc’s strength compared to the euro, since a staggering majority of the trade activity is done with the Euro-area (more than 70%)

The Yen (Usd/Yen) had a 50-pip range during Wednesday’s session, as the pair traded between the 95.05 support area and the resistance trend-line that connects the 01.21 and 5.22 lows. However, shortly after the FOMC statement, the yen found the strength to break higher, even though the gains were still very small. 

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