EUR/USD Levels Provoked By Fed Decision
Admirals | Sep 23, 2013 08:54AM ET
Despite the shooting star created on the daily chart on Thursday, the EUR/USD stayed high, and this candlestick formation did not cause any major retracement. As we all know, high levels on this pair were provoked by the FOMC statement and the FED decision of leaving QEIII unchanged (at least till December). The said decision caused a drop in the value of the American dollar. The price went through the psychological barrier at 1.35, and currently uses this level as a support.
What is more, the price managed to break the downtrend line (blue), which should trigger a buy signal in the long-term strategies. The closest resistance is at the 1.37 level from the 1st of February, and we can anticipate that this area should be tested in the near future.
The new week started with the bullish gap that was already closed during the Asian session. On Sunday, we had elections in Germany, but the win by Angela Merkel was already discounted by the market. At 8:30 GMT, traders found out about the German Flash Manufacturing PMI, which came a little bit worse than expected, and the German Flash Services PMI that came better.
Monday is rather unusually rich in the macroeconomic data. Apart for the PMIs, we have a speech given by the ECB President Draghi. His words always have a big impact on this pair and should be listened to carefully.
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