EUR/USD Advances Before FOMC Event
Talking Points
-
The
EUR/USD
trades higher before
FOMC
- Bullish breakouts begin over 1.0913
- Bullish reversals begin under 1.0882
EUR
/
USD
30 Minute Chart
(Created using Marketscope 2.0 Charts)
What is in store for the
US Dollar
in 2016?
See our Analyst forecast here!
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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