EUR/USD EUR to strengthen against the USD and the JPY

What goes down, must go up!! The EUR is higher this morning, as the market seems to be going after the USD following the FOMC meeting where rates were left unchanged at 0-0.25%. The FED maintained their commitment to keeping rates low until the middle of 2015 and will continue the $40 billion per month open-ended QE3 program.

The accompanying statement stated that the FED showed concern that “without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions.”

These statements were apparently enough to get the EUR to strengthen against the USD and the JPY, as the single currency has once again jumped above the 1.3000 level. Without much news on the Euro front today, traders will focus on the US Durable Goods Orders release later this morning. Traders took advantage of “weak short” positions to run stops and move the currency higher during the Asian trading session. While some may get “excited” above the change in “big figures”, we remain stuck within the 1.2810 – 1.3172 trading range and there will be no excitement until that changes. Two things seem to be driving the EUR these days. One is Spain and the other is QE3. With no surprises on either, the market remains hopelessly rangebound.

EUR/USD intraday: further upside.

Pivot: 1.2945. Our preference: LONG positions @ 1.2955 with targets @ 1.301 & 1.3045. Alternative scenario: The downside penetration of 1.2945 will call for a slide towards 1.292 & 1.289. Comment: the pair is on the upside and is breaking above its resistance.

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