The USD rallied against several currencies after the Federal Reserve maintained its rates at 0.25%. Fed Chairman Ben Bernanke said in a statement that there is a huge possibility that the central bank would reduce its bond purchases this year should the economic forecast meets expectations.
The EUR/USD pair fell sharply immediately after Bernanke's statement, from around 1.3408 to 1.3276. Its effect continued in today's trading, as the pair is currently trading at around the 1.3201 mark.
Initial resistance for the pair is currently at 1.3356, followed by 1.3390. Meanwhile, initial support is at 1.3199, followed by 1.3167.
The GBP/USD suffered the same fate, as it dropped significantly from 1.5671 to 1.5485 within the hour after Bernanke's statement. It has bounced back somewhat in today's trading after beating expectations in its retail sales data. Its YoY figure rose from 0.8% to 1.9%, beating expectations of it dropping to 0.2%. Meanwhile, its MoM figure rose from -1.1% to 2.1%, instead of the expected 0.8%.
The pair is currently trading at the 1.5463 mark, with initial resistance seen at 1.5582, followed by 1.5621. On the other hand, initial support is at 1.5354, followed by 1.5316.
The AUD/USD fared no better as it fell from 0.9548 to 0.9338 yesterday. The aussie also experienced additional pressure from the HSBC Manufacturing PMI for June, which fell from 49.2 to 48.3, instead of the expected rise to 49.4.
The pair is currently trading at 0.9215 with initial resistance seen at 0.9427, followed by 0.9451. Meanwhile, initial support is at 0.9151, followed by 0.9128.
Finally, the USD/CAD rose to 1.0181 to 1.0247 within the hour after Bernanke's statement. The pair is currently trading at 1.0336, with initial resistance seen at 1.0337, followed by 1.0363. Initial support, meanwhile, is at 1.0222, followed by 1.0196.
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