Talking Points:
- The EUR/USD prepares to breakout ahead of today’s FOMC Event
- Daily breakouts may occur above 1.0873, or below 1.0503
- What’s next for the EUR / USD ? Read Our Euro Market Forecast HERE
The EUR/USD is setting up for a potential breakout, with today’s FOMC rate decision on the way. It is widely anticipated that the FED will increase the Fed Funds rate by 0.25%, causing volatility in US Dollar pairs. While a raise in rates is typically seen as bullish, many traders see that a lack of forward guidance may actually see the US Dollar declining.
Technically, regardless of the event outcome, the EUR/USD has the potential for a large market breakout. The pair has now been trading inside of a defined range for the better part of a month. This range, as displayed below, has been identified as the area beneath the monthly high of 1.0873 and the monthly low of 1.0503. Traders may continue to monitor these values throughout today’s FOMC event to gauge the markets chosen direction.
EUR/USD Daily Chart and Range
(Created Using TradingView Charts)
What’s next for the US Dollar? Read Our Dollar Market Forecast HERE
Key intraday values to remember include today’s R4 pivot found at 1.0659. This area marks the last point of short term resistance, and a move beyond this value may suggest a bull run in the EUR/USD. Alternatively, bearish intraday breakouts may begin beneath 1.0589. If the EUR/USD trades below this point, the pair will be well on its way to test the previously mentioned value of daily support.
In the event that the EUR/USD continues to consolidate, traders should monitor both the R3 and S3 pivots. These final values of support and resistance make up todays 34 pip range, and are found at 1.0641 and 1.0607 respectfully.
US Dollar 30 Minute Chart and Pivots
(Created Using TradingView Charts)
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