USDollar Unchanged Pre-FOMC
- Today’s EURUSD range measures 30 points
- S3 support is found at 11,944
- Bearish breakouts begin below .929
USDollar 30Minute Chart
(Created using Trading View Charts)
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The USDollar is in focus today, with a big FOMC rate decision scheduled at 18:00 GMT (Learn more about the event HERE). While the USDollar is currently trading virtually unchanged for the day, many traders are looking for the news for a possible breakout in either direction. Using Camarilla pivot points, bullish breakouts are set to begin on a move above the R4 pivot found at 11,989. Conversely, a decline in price below the S4 pivot, found at 11,929, would have bearish implications on the creation of a new weekly and monthly low for the index. In either scenario, traders can use this directional bias to establish a trading direction for popular Forex pairs including the EURUSD and GBPUSD.
In the event that prices fail to breakout, traders will look for continued consolidation in the USDollar. This includes the potential for price to remain range bound inside of today’s trading range. Today’s range begins with support being found at 11,944 and resistance identified above at 11,974. In this scenario, any entries for breakouts would at least temporarily be put on hold. At which point, traders may adjust their strategy to fit the appropriate market condition.
Camarilla pivots are great tools for finding daily values of support and resistance. To getstarted learning about markets and trading intraday price reversals, continue your education with DailyFX HERE.
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---Written by Walker England, Trading Instructor
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