FX News – July 17: EUR/USD, AUD/USD Slip, USD/JPY Rises, and Bernanke Speech Later Today

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The EUR/USD has slightly slipped over the past few hours after reaching highs at around the 1.3170 level late in yesterday's trading.

The pair is currently trading at around 1.3140 with initial resistance seen at 1.3231, followed by 1.3264. Meanwhile, initial support is at 1.3107, followed by 1.3074.

The AUD/USD pair also slid early in today's trading after the Westpac Leading Index fell to 0.2 per cent from the previous 0.6 per cent. This is after the pair enjoyed this week's high at the 0.9254 level late in yesterday's trading.

The pair is currently trading at just below 0.9220, with initial resistance seen at 0.9346, followed by 0.9370. On the other hand, initial support is at 0.9169, followed by 0.9146.

In the case of the USD/JPY, the pair has been on a rise early in today's trading. This has been  fueled by the Bank of Japan's (BoJ) decision to maintain its economic policy. This means the BoJ will continue with quantitative and qualitative monetary easing until inflation reaches 2 per cent.

The pair is currently trading at the 99.350 level at the moment. Initial resistance is seen at 99.59 followed by 99.84. Meanwhile, initial support is at 98.39, followed by 98.15.

Bernanke's Speech Later Today, Expect Volatility

The main highlight of today's trading will happen later today at 2:00PM GMT during Federal Reserve Chairman Ben Bernanke's speech. Traders anticipate a dovish tone from the Fed in line with Mr Bernanke's Q&A session last week.

Expect volatility to happen within 90 minutes prior to the Chairman's speech as this is when the text he will read will be published. Another round of volatility may occur within 2 hours after Mr Bernanke's speech as this is where the Q&A session will occur.

So far traders remain unsure on which position to take due to the varying tones in Mr Bernanke's previous statements. While his tone was dovish in last week's speech, he also talked about reducing QE later this year if the US economy improved as expected.

By FX Strategy Team, Published on 17th of July 2013
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