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EUR/USD treading water around 1.3400

FXstreet.com (Edinburgh) - The EUR/USD continues to flirt with 1.3400 the figure on Wednesday, as markets get closer to the FOMC statement and the subsequent press conference by Chief Bernanke.

EUR/USD vs. B.Bernanke

According to the research team at BBH, the FOMC statement would be the least relevant release, as the evaluation of the economy would remain pretty much the same. “We expect the Chairman to help investors differentiate between tapering and tightening and to try to drive home the point that current conditions are not sufficient to slow down the long-term asset purchases ($85 bln a month)… The Fed exited QE1 and QE2 too early and needs to avoid making the same mistake for a third time”, concluded the analysts.

EUR/USD key levels

At the moment the pair is up 0.08% at 1.3403 and a break above 1.3411 (high Jun.19) would target 1.3416 (high Jun.18) en route to 1.3456 (high Feb.14). On the downside, support levels align at 1.3338 (hourly low Jun.18) ahead of 1.3326 (MA10d) and finally 1.3325 (low Jun.18).

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