The EUR/USD Consolidates Ahead of Event Risk

Talking Points

• The

  EUR/USD

  Ranges Ahead of

  FOMC

  Minutes

• Bullish Breakouts Began Over 1.1179

• 
  SSI
  

  is Bullish, Reading at -1.44

EUR

/

USD

30 Minute Chart

(Created using Marketscope 2.0 Charts)

Losing Money Trading?


This Might Be Why.

The EUR/USD is ranging this morning ahead of today’s FOMC Meeting Minutes release at 2:00 PM ET today. Currently,

prices

are remaining supported above the S3 Camarilla pivot point, which is found at a price of 1.1121. It should be noted that prices have so far traversed today’s 37-pip range twice. In the event that the EUR/USD stays supported, traders will again look for prices to test range resistance, which is found at a price of 1.1158.

Traders looking for a breakout should continue to monitor both the R4 and S4 pivot points. With this afternoon’s event risk, it raises the possibility of a late day breakout for the pair. Bullish breakouts begin above the R4 pivot point at a price of 1.1179. Conversely, bearish breakouts begin beneath today’s S4 pivot at a price of 1.1103. In either breakout scenario, traders may then elect to extrapolate 1-X of the previously mentioned trading range to find potential targets. This places initial bullish targets near 1.1216 and bearish targets near 1.1064 for the day.

SSI (

Speculative Sentiment Index

) for the EUR/USD is currently reading at a neutral -1.44. With 59% of positioning short, this would be considered a bullish signal for the EUR/USD. If the pair does breakout higher today, traders should look for sentiment to reach for negative extremes of -2 or greater. Conversely, in the event of a lower low, traders would reasonably expect this value to trend back towards more natural values.

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