FXstreet.com (Barcelona) - The single currency is now bouncing sharply to regain the 1.2900 mark and beyond on Tuesday, after dipping to the vicinity of 1.2840.

“We suspect Bernanke will recognize, as the FOMC statement did, that the economy is growing at a moderate pace and that decisions on the pace of asset purchases is a function of changes in employment and inflation… If this does in fact materialize, we suspect it would be supportive for US Treasuries while weighing on the dollar”, commented Marc Chandler, Global Head of Currency Strategy at BBH.

The pair is now advancing 0.25% at 1.2915 and a breakout of 1.2930 (high May 16) would aim for 1.2943 (high May 15) and finally 1.2947 (MA10d).
On the downside, support levels line up at 1.2809 (low May 20) ahead of 1.2796 (low May 17) and then 1.2740 (2013 low Apr.4).