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After the Fed, EUR remains overbought

The FED has left interest rates unchanged at 0-0.25% as expected and said it will continue its asset buying of $85 billion per month.It will continue with its commitment to keep interest rates near zero until such a time that the unemployment level in the United States falls to at least 6.5%. The present unemployment level is 7.8%.EUR USD After Federal Reserve Decision January 30 2013

The DOW initially rallied but has since dropped back below the opening level.

The EUR is literally unchanged. It seems as though the markets were expecting something very different than what was announced.

EUR resistance remains at the 1.3605 level. As stated before technicallly the EUR is well overbought and given that there were no surprises from the FED, the overnight trading range will be interesting to watch.

The debate will continue about whether or not the FED should continue with its asset purchase plan, but the bottom line is until the unemployment level in the US is brought under control this program will continue.

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Matthew Lifson

Matthew Lifson

Matthew Lifson is a Foreign Exchange Trader and a Market Analyst. with Cambridge Mercantile Group.