Today I’m going to share how I’m trading EURUSD as we head into Wednesday’s FOMC.
We’ll discuss key levels to watch, and possible scenarios following Wednesday’s volatility that could lead to a favorable opportunity.
Watch the video below and scroll down for the annotated charts and analysis.
EURUSD has been a tough currency pair to trade lately, as it moves sideways above the 1.0760 support.
We’ve discussed the recent fakeout above 1.0930 a lot in the VIP group.
But unfortunately, EURUSD never gave us a chance to get short on a retest of 1.0930 as new resistance.
It would have been a nice trade too, but the risk/reward wasn’t there without the 1.0930 retest.
For now, EURUSD is range bound between 1.0755 support and 1.0845 resistance.
However, Wednesday’s Fed rate decision and statement will likely shake things up.
Because of the upcoming volatility, I prefer to wait until the dust settles from Wednesday’s FOMC before considering a trade.
Ideally, we get a sweep of this week’s high and a full retest of 1.0845 as new resistance.
That could present a favorable short opportunity, but traders should be mindful of the 1.0755 support area.
That’s a key horizontal and trend line support from the 2023 low.
It will take a sustained break below 1.0755 to expose the 1.0650 region and potenetially 1.0450.
That said, we can’t rule out another run at resistance while EURUSD is above 1.0755.
As always, FOMC will likely decide the pair’s next move.
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