Daily Price Action
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EURUSD Pre-FOMC Trade Plan

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

Could today’s FOMC push EURUSD out of its comfort zone?

I think there’s a good chance.

Even if today’s events don’t force a break, the EURUSD is going to be forced to make a decision soon.

In Sunday’s video, I pointed out this sideways price action below descending channel resistance.

At the moment, that resistance area comes in just above 1.1080.

That’s the confluence of resistance that buyers need to break in order to push EURUSD higher, in my opinion.

As for support, the September 2 high just below 1.1000 is attracting buyers.

We can see that in the price action between the 16th and 17th.

So what’s my plan of action for the EURUSD?

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First, I won’t trade ahead of today’s Fed rate decision and statement.

The Fed rate decision is at 2 pm EST with a statement 30 minutes later at 2:30 pm.

There’s bound to be an increase in volatility and unfavorable spreads as markets try to interpret the outcome.

As such, I would rather stand aside and wait for the dust to settle.

Second, I have no interest in trading the EURUSD as long as this sideways price action is present.

I’m sure some of you have made money in this range between 1.0930 support and 1.1060/70 resistance, but that isn’t for me.

I prefer to wait for a daily close above channel resistance above 1.1080 or perhaps an eventual break below 1.0930.

However, I stand by what I wrote on September 6.

Given the broader descending channel that began last year, the pair has more room to move higher than lower.

That doesn’t mean it will move higher, but I don’t want to sell the euro when it’s bouncing from a thirteen-month channel support like this.

I would rather sell at higher levels if possible, but I’m not opposed to buying a break higher in the meantime.

In summary, a close above 1.1080/90 channel resistance would expose the 1.1200 area while a break below 1.1000 would open the door to 1.0930 horizontal support.

Want to watch a 6-minute video of how I’m trading EURUSD post FOMC?

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EURUSD price action showing two descending channels

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7 comments
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radz says

yeah I think I will wait for the dust to settle too. The USD could be heading for some lower highs and lower lows.

XAU USD Is also at a daily trendline looking up and USD CHF is looking like it could go down from daily resistance

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    Justin Bennett says

    That’s usually the best approach, at least it’s what I tend to do.

    Reply
Praise says

always grateful .thanks

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    Justin Bennett says

    You’re welcome.

    Reply
sifiso Hlatshwayo says

THE EURODOLLAR has traded accordingly and has formed the low of the quarter, and that low co-incised with the low of SEPTEMBER…THE ONE THING IT HAS TO DOTO FROM NOW IS TO MAKE A FALSE-MOVE QUARTER ENDING AND TAKE OUT WEAK SELLERS AND CLOSE FOR THIS QUATER…THE SMART MONEY WAS SHORT FOR THIS QUARTER AND NOW THEY ARE TALING PROFITS, BUYING BACK FROM LATE AND UNINFORMED RETAIL SELLERS.

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Alex says

thank you. It’s always valuable lecture and point of view from your side 🙂

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