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EUR/USD around 1.2860/65 on FOMC minutes

FXstreet.com (Barcelona) - The shared currency keeps the area of 1.2860/65 on Wednesday, after the FOMC minutes left no room for surprises.

True, Bernanke left and took the party somewhere else, as nothing new emerged from the minutes. Amongst the main points, the FOMC sees the economy growing at a moderate pace, leaving the outlook pretty much unchanged and surprisingly, some members were willing to scale back the bond buying in June. All in all, members agreed that more is needed in order to reduce the pace of QE.

As of writing, the cross is down 0.29% at 1.2867 and a breakdown of 1.2841 (low May 21) would aim for 1.2809 (low May 20) and then 1.2796 (low May 17).
On the flip side, resistance levels line up 1.3011 (MA21d) followed by 1.3030 (high May 14) and then 1.3051 (high May 10.

FOMC minutes next: impact on EUR/USD

Volatility may have not come to an end this Wednesday as the minutes from the latest FOMC are due for release at 18:00GMT. Following Bernanke testimony and his mixed signals about the possibility of tapering the QE program, investors will be looking for further cues as Fed Chairman did leave the door open to acting in the next few meetings.
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AUD/USD extends decline to 0.9660

After falling around 165 pips following the Bernanke speech and breaking down the 0.9700 level, the AUD/USD traded at 11-month lows at 0.9660, where the pair seems to have found support.
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