Forex: EUR/USD ignores EMU confidence, all eyes on US FOMC

FXstreet.com (Barcelona) - The EUR/USD is still quoting close to its daily highs but still capped by resistance around 1.2970 after the release of the flash EMU consumer confidence in March. Data in the Eurozone improved only from -23.6 to -23.5, disappointing expectations of a rise to -23.3. The main focus of the day is the FOMC meeting at 18:00 GMT. ~

“The Minutes to the meeting will be more relevant in the context of evolving exit strategy at the Fed. Talk of exit is simply prudent policy planning, it does not mean QE will stop anytime soon. Another 9 months looks likely”, wrote TD Securities analysts, adding that the evolving “no asset sale” exit strategy appears to be gathering momentum and that fears over the Fed’s capital destruction from asset sales are grossly mis-placed, and is not part of the Fed’s thought process.

“Yesterday the EUR/USD currency pair renewed its minimums; a new ascending movement is very weak. We think today the price may renew its minimums once again and reach the level of 1.2820”, wrote Roboforex.com analyst Igor Sayadov, expecting then a new ascending structure towards the level of 1.3190.