Talking Points
- EUR/USD resistance is found at 1.1072
- FOMC event risk could cause US Dollar pairs to breakout
- Bearish reversals begin under 1.1059
EURUSD 30 minute Chart
(Created using Trading View Charts)
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The EUR / USD has moved to daily values of resistance this morning ahead of today’s highly anticipated FOMC event . Currently resistance is found at the R4 pivot point, displayed above at a price of 1.1072. While prices have yet to attempt any significant breakout, traders will be looking towards today’s news at 18:00 to give the pair further direction. Expectations are that key interest rates are to be left at .25%, but any adjustments to this policy could have drastic affects for the EUR/USD and other US Dollar crosses. In the event of a breakout above the R4 pivot, traders may begin looking for a 1x extension of today’s 27 pip range towards a price of 1.1089.
In the event that the US Dollar begins to rally, traders will look for a reversal in EUR/USD prices. A move below the R3 Camarilla pivot point, found at a price of 1.1059, opens prices up to testing valeus of support. It should be noted that S3 range support pivot is found at a price of 1.1032. As well, bearish breakouts begin for the EUR/USD at 1.1019. A move to this point would be significant, as it would be the pairs first bearish breakout since last Thursdays 252 pip decline . In this scenerio, traders should conclude that bullish momentum that has at least temproarily been suspended and begin looking for new positions based on the markets chosen direction.
---Written by Walker England, Trading Instructor
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