EUR/USD test lows on unchanged Fed

FXstreet.com (Edinburgh) - The single currency is now retracing initial gains on Wednesday, dragging the EUR/USD to test fresh session lows around 1.3730/25.

EUR/USD weaker on Fed

The pair is now rapidly depreciating against the greenback after the Fed left intact both the bond buying and the benchmark rate at $85 billion and 0.25%. Members also have seen improvement in the economy despite the recent fiscal developments. Regarding the timing of QE tapering, the Fed informed that more data is needed in order to start scaling back the monthly purchases of bonds.

EUR/USD key levels

The pair is now advancing 0.14% at 1.3765 with the next resistance at 1.3818 (high Oct.28) ahead of 1.3833 (2013 high Oct.25) and finally 1.3859 (high Nov.11 2011). On the flip side, a break below 1.3727 (MA10d) would expose the psychological level at 1.3700 followed by 1.3662 (low Oct.22).

USD/JPY breaks resistance; reaches 98.51

USD/JPY was fueled by bulls shortly after the release of the Federal Reserve interest rate decision.
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Fed keeps policy unchanged

The Federal Open Market Committee decided to keep its policy unchanged, maintaining the target range for the federal funds rate at 0 to 1/4 percent Wednesday and the bond-buying amount at $85 billion-per-month, giving few signals on the timing the bank could start tapering such program.
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