Yesterday the pair was declining; however following publication of the US index of consumer confidence, the rate rose up to the level of 1.3810. Later the price went down again up to the lows of 1.3733. The outcome of the FOMC meeting today will show for how long cancellation of QE3 program will postponed. This news will determine further direction of EUR/USD rate.
Support and resistance
The nearest support level is 1.3735. Next support levels are 1.3710, 1.3700 and 1.3685. The level of 1.3700 is the main target of the “bears”. Resistance levels: 1.3750, 1.3780 and 1.3800.
It is not recommended to enter the market prior to announcement of the outcome of FOMC meeting. However it makes sense to place pending orders. Buy Stop can be placed at the level of 1.3815 with protective orders near 1.3790. Sell Stop are advisable at the level of 1.3720 with stop loss at the level of 1.3755.
Analyst of LiteForex Group of CompaniesPublication source