From the FXWW Chatroom: Ahead of tonight’s FOMC the price action in EURUSD has been a little disappointing given the emphatic rejection above 1.17. While this is a cause of concern for some in the short-term, there is little evidence to suggest that the medium term trajectory has been altered much just yet. The extent to which the USD has been under loved in the past few weeks has almost certainly encouraged some opportunistic USD demand but I would suggest we need a clear change in tone from the FOMC or a resumption of the robust US data before a sustained USD rally is likely. With this in mind I tend to think that while some short-term USD strength is possible we are not yet at a point which we can fundamentally argue for a sustained move. Hence a test of 1.1580/1.1530 is imminently possible and only a sustained close below 1.1500 would really force a rethink of our long held EURUSD higher conviction.
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