The Fed said it will reduce bond buying to $55 billion per month, split as $25 billion MBS and $30 billion Treasuries. As some had expected, the central bank dropped the 6.5 percent jobless rate threshold as a factor in determining future interest rate path. The Fed said it will assess its progress toward reaching its goals on unemployment and inflation when determining the time to raise rates.

Technical view-

The US dollar jumped yesterday. The price was consolidating near the lower levels for 4 consecutive days and jumped to higher levels. In our previous report dated March 18, 2014 we recommended a buy call for the targets of 80.12, 80.40, and 80.75. We are still recommending going long on a positional basis.

Positional view-

The price is facing resistance at 40EMA, 80.12; when it crosses this level, we will see 80.37(50SMA) and 80.75(200EMA) in the near term. RSI and stochastics are supporting my view. A day close above the level 80.37 will confirm that bulls are back on track, and a day close above the level 80.75 (200EMA) will indicate a completed trend reversal towards higher levels at 81.32-81.39, and 81.46.

On the downside, if the price breaks the 79 mark, it will drift to 78.90, 78.6, immediately, which is a buyers' corner.

S1 79.60 R1 80.11

S2 79.27 R2 80.38

S3 78.60 R3 80.75

Intraday-

The price is facing strong resistance at 200EMA (80.05), and daily momentum indicators do not favour to enter longs at current market price. Please wait for a dip towards 79.9-79.60 and enter longs.

S1 79.59 R1 80.05

S2 79.27 R2 80.12