The US dollar gained some momentum trading below the 1.3700 level during Asian trade on Thursday as the FOMC policy provided a vague statement, making it unclear for the market to derive a ‘dovish’ or ‘hawkish outcome from the Fed. The FOMC remained noncommittal and deferred a Taper helping the dollar to gain, while it was precisely the lack of alternation from the September 19th statement that is troubling the market. After yesterday’s FOMC, some traders believe that the Fed attempting to keep a December taper as a possibility. The Bank of Japan also kept its monetary policy unchanged, increasing its monetary base at 60-70tln yen and maintaining the overnight rate at 0.1%. The Japanese yen did not react to the announcement, keeping the Usd/Jpy steady at 98.43.
Trade Idea
EURUSD
The eur/usd found support at the 1.3700 level. A break of this level should have the pair targeting 1.3660 and possibly 1.3560.
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