22, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

In a fairly quiet trading and a lack of information EUR/USD closed higher at 64 points on Tuesday, ending the day at 1.2930 and thus trying to compensate at least some of its recent losses.

Sean Callow favors profit-taking on USD long positions. According to him, the president of Federal Reserve Bank of Chicago is optimistic about the USA economy in 2014, he expects a significant increase in the labor market (over 200 million) in the coming months in order to subsequently reduce the confidence of quantitative easing (QE).

The fact that the dollar fell against the yen, it provoked a weakening against other major currencies. This month has seen a sharp rise in the dollar amid speculation on the reduction of economic stimulus programs in the U.S..

However, it began to feel the pressure which is associated with a performance on Wednesday Ben Bernanke, chairman of the Federal Reserve, before the Joint Economic Committee (Joint Economic Committee), as well as expectations for the minutes of the last meeting of the Federal Open Market Committee (Federal Open Market Committee)

In this regard, traders should closely monitor the FOMC minutes and Bernanke information in order to understand whether the Central Bank is scheduled minimize asset purchase program.