The Euro slipped against the green back during last weeks trading session after the Federal Reserve wound up its quantitative easing program and said it was confident the U.S. economic recovery would continue.
The Fed said targets for inflation and a reduction in unemployment were on track, but added that interest rates would remain close to zero for a “considerable time”.
The U.S. central bank said that although the jobs market is strengthening, there is still room for improvement, but not “significant improvement,” as it has said previously, in the labor market participation rate.
“The Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability,” the Fed said.
Weekly bias remains on the downside as 21 and 55 EMA are crossed southward indicating the re-ignition of the bearish trend. Oscillator indicators such as MACD, RSI and SSRC (stochastic) are showing bearish momentum is still holding. Am expecting further decline to 1.2300 psychological zones if we get a clear break of 1.24849 supports.
Later this week investors would be taking a close look at the ECB Press Conference, US ISM and Non ISM Manufacturing PMI, Non Farm Employment Change and Unemployment Rate.