Last week update, purely focus on a technical perspective, showed how dangerously close the EUR/USD was to the neckline of a big H&S pattern in the daily chart. However, price was not even close to test the base of the figure, around 1.2740/50, and found buyers on dips toward 1.2800/20 price zone for most of the day.

The FED did not actually bring anything new to the table, saying that they will tapper QE when the economic situation improves, something we all already knew. But it was how market read the news, and not what was actually said what moves the market. Stocks had been under pressure ever since the Minutes, after posting record highs almost daily basis during May: investors are not so confident now on ad eternum QE, and therefore, dollar buyers are back to fight. 

The EUR is one of the few majors that points to close the week positive against the greenback, with the EUR/USD daily chart showing sellers around 1.3000, 20 SMA in the mentioned time frame, and indicators trying to correct higher, still in negative territory. Further recoveries need to push price above 1.3040 area and with a weekly close above it, chances turn to the upside next week, towards 1.3200 price zone, top of its recent range.

 The figure is not yet discarded, but is now on hold: as long as price stays above 1.2744, yearly low, there’s not enough technical signs of a bearish continuation, while a break below this last will likely trigger a stronger bearish rally, eyeing then 1.2660, November 2012 low, ahead of 1.2430/60 price zone.

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