EUR/USD Moves to Daily Resistance as Markets Wait for FOMC
- The EUR/USD Opens Higher Despite Friday’s Bearish Breakout
- Markets are Waiting for FOMC on Wednesday
- Sentiment Remains Negative at -1.20
The EUR/USD is pushing towards resistance this morning, despite declining as much as 76 pip on Friday. With little on the economic calendar for today, most US Dollar based pairs are looking forward to Wednesdays FOMC rate decision to find direction. At this point, most analysts have expectations of key rates being left at 0.50%. Any deviation from this expectation may have drastic effects on the EUR/USD
Looking for additional trade ideas for the Euro? Check out our Euro Trading Guide
EUR/USD 30 min Chart
(Created using Marketscope 2.0 Charts)
Technically, the EUR/USD is trading today inside of a 42-pip range. Currently, prices are testing range resistance, which is depicted above at the R3 pivot at a price of 1.1267. If prices stay below resistance, traders may look for prices to remain range bound and move back towards support at 1.1225. In the event that prices continue to rise, traders may begin looking for a technical breakout above 1.1288. This bullish scenario would open the pair up to testing 1.1330, which is a 1X extension of today’s 42 pip range. Alternatively, bearish breakouts begin under the S4 pivot found at 1.1204.
Why and how do we use SSI in trading? View our video and download the free indicator here
SSI (speculative sentiment index) for the EUR/USD stands at –1.20 with 55% of positioning short. While this number is not extreme, with positioning net short it may be an indication of a future EUR/USD advance. Alternatively, if the EUR/USD reverses lower traders may look for SSI values to move towards a more neutral reading.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.