The EUR/USD went down yesterday after the decision by the FOMC to taper the stimulus by another $10 billion. Furthermore, the Fed is considering raising the Federal Funds rate by more than expected – another factor helping the dollar climb. Today, the pair has retraced some of these losses and has consequently gone up a little. However, worse than expected German PPI is likely to push the pair down a little more as the euro sheds some value. Considering that the EUR/USD has been at relative highs these past couple weeks, the pressure on the pair will be downward as the dollar strengthens not only from US monetary policy decision but also from a natural upward reversal. Look for support at 1.3809 and resistance at 1.3843.
The USD/JPY climbed substantially after the tapering decision yesterday. Today, the pair has retraced some of these gains in light of a rising yen. During the Bank of Japan press conference, BoJ governor Kuroda said that the Japanese inflation rate would reach its 2% target in late 2014 or 2015. Though this bodes well for the yen in general, the pair is still facing upward pressure from US monetary policies and since it has been at relative lows fro a while, buyers may use this opportunity to push it higher. Be sure to pay attention to the existing home sales data coming out at 14:00 GMT. Look for support at 102.11 and resistance at 102.68.
March 20, 2014 – Forex News
The EUR/USD went down yesterday after the decision by the FOMC to taper the stimulus by another $10 billion. Furthermore, the Fed is considering raising the Federal Funds rate by more than expected – another factor helping the dollar climb. Today, the pair has retraced some of these losses and has consequently gone up a little. However, worse than expected German PPI is likely to push the pair down a little more as the euro sheds some value. Considering that the EUR/USD has been at relative highs these past couple weeks, the pressure on the pair will be downward as the dollar strengthens not only from US monetary policy decision but also from a natural upward reversal. Look for support at 1.3809 and resistance at 1.3843.
The USD/JPY climbed substantially after the tapering decision yesterday. Today, the pair has retraced some of these gains in light of a rising yen. During the Bank of Japan press conference, BoJ governor Kuroda said that the Japanese inflation rate would reach its 2% target in late 2014 or 2015. Though this bodes well for the yen in general, the pair is still facing upward pressure from US monetary policies and since it has been at relative lows fro a while, buyers may use this opportunity to push it higher. Be sure to pay attention to the existing home sales data coming out at 14:00 GMT. Look for support at 102.11 and resistance at 102.68.
Related Posts: