The EUR/USD pair initially trying to rally during the Wednesday session, but sold off rather drastically as the markets developed a “risk off” attitude around the world. The Federal Reserve released its minutes from the last meeting during the session, and there were parts of it to discuss that many of the members are starting to look at other ways to help the economy along. In other words, there is a possibility that they are looking to cut back on asset purchases. If that’s the case, it dries up a lot of the liquidity and the US dollar gains overall. This is what you see in this chart.
However, the 1.3250 level has held as support so far, and as a result we need to see a break well below that in order to start selling. Alternately though, this is an excellent place to buy if we get the right type of candle. So far we do not have it.
Written by FX Empire