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FED buys bonds causing USD and JPY to surge in late morning trading.

The Federal Reserve bank of NY purchased 2.2$ billion in Treasure bonds late Thursday morning causing a shift from the early morning slide of both the USD and JPY. Both pairs gained ground on the announcement as traders see this is a pledge to reinves cash from the maturing mortgage backed securities and look to shift capitol back in Bonds in an effort to strengthen the US economic recovery. The auction offered nearly 12 billion in debt maturing between 2021 and 2040.

At this point I still see oportunity for the dollar to weaken further over the comming weeks and months and currently am looking for support in the EUR/USD around 1.3560; support of the GBP/USD around 1.5725 and AUD/USD support around 0.9611

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