EURUSD: Remain Short into FOMC
I initially sold EURUSD at 1.4328. Prices are testing the bottom of a falling channel connecting major lows since mid-April and I expect directional momentum to be lackluster until the outcome of Wednesday’s FOMC announcement, at which point selling should resume as the Fed disappoints by shying away from a QE3 program. I will remain short, aiming for a soft objective at 1.3416. The stop-loss is now at the breakeven rate (1.4328).
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