The EUR/USD pair shot straight up during the session on Wednesday as the Federal Reserve announced that it was going to continue its quantitative easing policies. Expansion should pump roughly another trillion dollars into the markets, and this of course should weaken the US dollar overall. Because of this, there was no surprise that the Euro gained. However, we do see the 1.3150 level as significant resistance, and you can see that the market struggle with it.
Because both currencies have a litany of problems, it is difficult to see how this market will breakout with any significance in the short-term. In fact, we are looking at it as a range bound market between 1.29 and 1.3150 until we finally get some type of decisive move.
Written by FX Empire