The EUR/USD pair tried to break above the 1.45 level again on Wednesday, but failed yet again. The US Durable Goods numbers came in much higher than expected, and as a result – the Americans sold off their currency and looked for risk elsewhere. As a general rule, this works as stock traders go into places like Europe. However, with the Jackson Hole Fed Retreat being held, the real question is whether or not Mr. Bernanke will announce a form of QE3. If he does, the Euro should get a massive bounce from here. If he doesn’t – that would be USD positive. Until that announcement on Friday, this pair will be stuck in this area.
Written by FX Empire