EUR/USD Advances Before FOMC Event
- The EUR/USD trades higher before FOMC
- Bullish breakouts begin over 1.0913
- Bullish reversals begin under 1.0882
(Created using Marketscope 2.0 Charts)
The EUR/USD is trading up .2% this morning, ahead of today’s highly anticipated FOMC rate decision. While the FED is expected to hold key interest rates at .50%, this event is also expected to produce volatility in major US Dollar pairs. As of this morning, the EUR/USD has already bounced from support found at 1.0851. With price, action now approaching the R4 resistance pivot at 1.0897. Traders looking for an extended rally in the EUR/USD can use a 1-X extension of today’s 31-pip range to find targets near 1.0913.
In the event that prices begin to range prior to the FOMC rate decision, traders will look for the EUR/USD to trade back inside of range resistance found at the R3 pivot at a price of 1.0882. A move to this point of the graph opens up price action to again test range support, which is found at today’s S3 pivot at a price of 1.0851.
Traders tracking sentiment should note that SSI (Speculative Sentiment Index) for the EUR/USD is currently reading at -1.37. This value is slightly negative with 58% of positioning short the EUR/USD. While this value is not extreme, if prices begin to breakout during the FOMC rate decision traders can track SSI to validate any emerging market trends.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.