EUR/USD rockets higher on “no tapering”; Elliott Wavers scrambling to re-set targets

FXstreet.com (Barcelona) - The EUR/USD ripped to the upside on a plunge in US rates and a tumbling DXY after Bernanke & Co. shocked global investors and traders by refusing to even partially commence their QE program as many expected.

EUR/USD traders to seek additional guidance from US data Thursday

After Wednesday’s upside fireworks took the EUR/USD up to new short-term highs and a clearly overbought condition, traders are looking for more fuel to add to the upside fire. There are hardly any data points set to be released by the EU or its constituents Thursday, so traders will wait for the heavy US data flow scheduled for Thursday to start up.

Specifically, the US will see released its Weekly Jobless Claims and existing home sales data, the Philly Fed Manufacturing Survey and the Conference Board’s Leading Economic Indicators.

Technical outlook for EUR/USD

Even the technical EUR/USD bears out there had to wave the white flag for the time being after Bernanke pulled his unexpected “no QE” Trump Card out and threw it on the table Wednesday. Elliott Wave Technicians now turn to projecting upside targets as opposed to identifying resistance levels at which to initiate short positions. Right now, they are saying EUR/USD may see a modest pullback to around 1.3437 before another shot to the upside should take the cross up to 1.3567.

Gold surges above $1350 as no taper delivered

Gold reacted to the upside few minutes before FOMC announcement in a suspected leaked move ahead the news were out, as Tyler Durden at Zerohedge reports: “Around 4300 contracts changed hands in the Dec Futures - massively more than average volume - before the statement came out and drove prices further up.”
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NZ GDP next: Impact on NZD/USD

Up next at 22.45 GMT is the New Zealand Gross Domestic Product release for Q2, a figure that will most likely be a big mover for the NZD/USD, as the number provides an excellent indication about the state of the economy.
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