Market Ranges after FOMC

The decision was made very well by the FED where the use of specific words during the meeting was the key, as it allowed them to savor with the market where they wanted. The major currencies fell but the overall outcome was offset the next day where the market rebound a bit and played in range.

Finally, Euro with Bears

The euro experienced the worst impact of all currencies where it plunged sharply from the 1.3805 resistance area down to 1.3682 where it entered the short term bearish channel.

Currently the pair is trading at 1.3635 as it lost more against the U.S. dollar yesterday, but traders are looking forward to the German PPI and German consumer climate data that is set to be released in the European session today.

The pair would remain in the hands of the bears as long as it trades below the critical resistance level of 1.3716, whereas sustaining above this level could result bulls to enter the market yet again.

40 Points Range

The British pound remained in a tight range on Thursday as the support was sufficient enough to keep it sustain in the short-term bullish channel, but you must be wondering why it did not fall after FOMC meeting. The reason being that the unemployment of the U.K. economy has dropped down to 7.4% from the previous 7.6% level, which has boosted the confidence in the economy. Plus, analysts are predicting that the BoE might be looking into the idea to increase the interest rates as the labor market and the consumer market has recovered notably. Therefore, the GBP/USD gained substantially before FOMC meeting, and then fell by 90 points that basically offset its redundant gain, hence leaving to no negative impact on the pair.

However, final GDP of 3rd quarter is due today and if that data disappoints and the pair moves below 1.6345 then sellers would enter the market and drag down the pair till 1.6316 and 1.6302, breaking of which could show 1.6285 and the last support of 1.6269.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com

Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it off...

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