Forex: EUR/USD sidelined around 1.2730/40, FOMC eyed (Barcelona) - Seems the euro has found a new comfort zone around 1.2730/40 on Wednesday, ahead of the FOMC minutes to be published later. Although market consensus does not expect major announcements, the statement has grown in importance and relevance given the mounting US ‘fiscal cliff’ and the end of ‘Operation Twist’ by year-end

C. Tuxen, Senior Analyst at Danske Bank also argues “the big question is whether the FOMC is moving closer to adopting a formal policy rule. Yesterday Fed’s Yellen endorsed the idea of a formal rule”.

EUR/USD is now up 0.22% at 1.2732 with the next resistance at 1.2778 (MA10d) followed by 1.2791 (high Nov.9) then 1.2800 (psychological level) and 1.2815 (MA200d).
On the downside, the first support awaits at 1.2700 (low Nov.14) ahead of 1.2661 (low Nov.13) then 1.2627 (low Sep.7) and 1.2607 (50% of 1.2042-1.3173).