The EUR/USD pair initially try to rally during the session on Wednesday, but the 1.38 level offered far too much resistance again. The market really started the selloff though as the Federal Reserve announced that it was cutting back the bond buyback purchase program slightly, and thereby tapering off of quantitative easing a bit. However, in the same statement the Federal Reserve also announced that rates will be lower for a longer period of time than originally thought, which of course should be Dollar negative in the end. Because of this, we are a bit hesitant to sell now as we see the 1.36 level as being very supportive.
Written by FX Empire