EURUSD: Keep This Liquidity Pocket on Your Radar Post FOMC

Written by Justin Bennett

|   Last Updated November 1, 2023

·      November 1, 2023

Written by Justin Bennett 

|   Last Updated November 1, 2023


Today I’m going to share a EURUSD liquidity pocket that could become a factor following today’s FOMC.

We’ll discuss key levels for the euro, my longer-term target, and what to watch from the US Dollar Index (DXY).

Watch the video below and scroll down for the annotated charts and analysis.

EURUSD is starting November on a bearish note as we head into today’s Fed rate decision.

The euro caught a slight bid earlier in the day after testing the 1.0520 key area, but is once again struggling as we approach FOMC.

As always, trading ahead of high-impact events like FOMC is ill-advised.

Even if you get the overall direction right, the volatility and slippage during such events often result in getting stopped out prematurely.

With that in mind, I’m always skeptical of large moves ahead of FOMC.

Speculators ahead of high-impact news seldom get it right the first time.

Furthermore, a look at the EURUSD daily time frame shows a potential pocket of liquidity just above 1.0600.

It’s the same area we were focused on in October, and one that served as resistance on Tuesday, at least on a daily closing basis.

Large candles and wicks like the one produced during Tuesday’s selloff often illustrate pockets of liquidity that serve as magnets for price.

That doesn’t mean EURUSD will revisit 1.0630, as there are no guarantees in this business.

But it is something to keep in mind as we approach today’s events.

Keep in mind that we also have non-farm payroll on Friday, which is another high-impact event for the EURUSD.

EURUSD 2023 11 01 13 55 21
EURUSD: Keep This Liquidity Pocket on Your Radar Post FOMC 2

Justin Bennett - founder of Daily Price Action

About the author

Justin Bennett started trading in 2002, and let's just say it was a bumpy ride. But in 2010, he had his "aha" moment once he ditched the indicators and focused 100% on price action. Justin has built a following of 100,000+ monthly readers and taught thousands of traders using his simple, no-nonsense approach. He's been highlighted as a top trader by Stocks and Commodities Magazine and regularly featured by Forex Factory next to publications from Bloomberg and CNBC. ...Read More


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      1. I have already have the mebership. So can you send the link via email. I emailed you abt this topic few days ago. Kindly check your email inbox
        Tnx

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