Todayall the attention is on the Fed's decision on monetary policy
Foreign exchange marketstabilized in anticipation of the outcome of the Federal Open Market Committee of the US Federal Reserve. Opinions of the market participants about what the results of the meeting will be are divided. Still, a majority of experts believes that no changes in the policy willfollow and that they are likely to occur by the spring of next year.
Another group of expertson the contrary think that the decision about stimulus reduction will be made at this meeting already. But whatever Bernanke says at his press conference, the main thing in his words will be clarification on the timing of the beginning of stimulus reduction and its volumes.
If it will be so,you can expect a sharp local strengthening of the dollar, since any certainty about the timing of the program will negatively affect too overheated U.S. stock market which is likely to begin the long-awaited correction.
Today,in anticipation of the Fed's decision on monetary policy there will be released a block of important statistics on the construction sector. Positive data would also support the dollar.
Based on theinformation above we can assume that the short-term trend on EURUSD is over, since the relationship between the euro and the dollar is no longer in favor of the single currency. We can assume that the pair will fall to the level of 1.3687, which corresponds to 23% Fibonacci correction level.
