The EUR/USD pair fell hard during the session on Wednesday, slamming into the 1.33 handle and breaking below it. However, we did get a little bit of a bounce towards the end of the session, and as a result we are currently hugging the 1.33 handle again. This is based upon the fact that the Federal Reserve Chairman suggested that the United States would start tapering off of the quantitative easing by the end of the year, and in fact be out of it by the middle of next year. That being the case, the US dollar surged against almost all currencies, and the Euro of course would’ve been no different. Because of the action for the session on Wednesday, we believe that a move below the lows from the session will in fact signaled that this market is going to continue much lower. Right now, we are a little bit hesitant to go long.
Written by FX Empire