EURUSD smashed through its long-term trend line support with a 200-pip drop overnight, but what’s in store for tomorrow’s FOMC?
Watch today’s video for insights on key levels and potential targets following the EURUSD breakdown, and get the latest on the US Dollar Index (DXY).
EURUSD is breaking down today with an impressive 200+ pip drop.
In Tuesday’s video, I mentioned the likelihood of extreme volatility during and after the US presidential election, and that’s exactly what we’re seeing today.
The DXY is also surging above 104.50, a level that could prove significant if dollar bulls manage to hold these gains.
As you may know, I’ve been bullish on the US dollar since the DXY reclaimed 102.00 and 102.60.
Even after the 104.50 resistance retest, I’ve preferred looking for USD longs on pullbacks.
For EURUSD, a sustained break below the October 2023 trend line could open up downside targets like 1.0670 and 1.0615.
That said, today’s breakdown could still be a fakeout.
EURUSD would need to close back above the October 2023 trend line at 1.0780 to negate the bearish signal.
Remember, tomorrow’s Fed rate decision is likely to trigger another round of volatility for EURUSD and DXY.
