Forex Technical Update
The EUR/USD has been building strength above 1.3150 toward a recent trendline that should meet price at 1.33. However the 1.3225 high from last week was in the way and it needed to clear that to open up further targets to the upside. The market came up and cracked the 1.3225 level during 4/25 European trading, but failed to follow through. The FOMC risk event was just ahead.
At 12:30PM EDT, the FOMC statement came out, and it read very similar to the previous. It basically didn't give the market anything new to go on. The lack of mention for stimulus now further removes the possibility of it, and thus gives the USD some support. Though nothing substantial, it is stopping currencies like the EUR from strengthening against it, and continues USD strength against the JPY.
However by 2:30 with Bernanke's speech underway, the market went against USD strength, and the EUR/USD revives the strength building toward firs the 1.33 resistance from a declining trendline. On any throwback 1.3150 should be a key support. A break below this can shelve the bullish outlook.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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