The EUR/USD pair rose before the Federal Reserve’s Wednesday announcement, filling the gap from the weekend. The pair then fell apart as the announcement wasn’t overly optimistic and disappointed as the Fed didn’t do much to boost the economy. In a sense, this was the Fed telling everyone that they were on their own. With the uncertain environment, the first trade is to buy the USD. The 1.35 level is just below, and that will be the site of the real battle. If it gives way – we fall much, much farther at that point. A bounce could be interesting in so much as to sell the rally as there are simply far too many issues in Europe to buy the Euro at any point. With the global economy looking weaker and weaker, buying the USD will be the way to go overall.
Written by FX Empire