FX News – July 18: No Big Impact from Bernanke Testimony

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Federal Reserve Chairman Ben Bernanke's testimony yesterday created a bit of volatility as expected. However, it made no significant impact in the end as the greenback returned to the same level it was prior to the testimony.

While Mr Bernanke implied that the Fed would not raise rates soon, QE tapering is still likely to happen this year. All in all, yesterday's testimony was in line with the previous statements that came from the Fed, so it didn't make a big dent in yesterday's trading.

The testimony has had little effect on the AUD/USD pair as it is on a slippery slide again after peaking at about 0.9275 yesterday. It opened today's trading session at about the same level as yesterday's, at around 0.9235. However, it is currently slipping down to 0.9214 at the moment.

Initial resistance for the pair is at 0.9346, followed by 0.9370. Meanwhile, 0.9169 is where the initial support is at, followed by 0.9146.

As for the USD/JPY, the pair is showing signs of recovery early in today's trading after falling sharply around the time of Mr Bernanke's testimony. From yesterday's high of 99.840, it slid to about 99.195. The pair is currently trading at 99.646 and may well be on its way back to levels seen at the beginning of yesterday's London session.

Initial resistance for the pair is at 100.25, followed by 100.50. Meanwhile, initial support is at 99.32, followed by 99.07.

The EUR/USD pair opened low in today's Asian trading although it remains well within the 1.3100 territory. The pair is currently trading at 1.3111 with initial resistance seen at 1.3152, followed by 1.3184. On the other hand, initial support is at 1.3055, followed by 1.3023.

Today will be a fairly quiet trading day overall, except for Mr Bernanke's testimony at the Senate, which will happen at 2:00PM GMT.

By FX Strategy Team, Published on 18th of July 2013
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