Will EURUSD stay range-bound after today’s FOMC volatility, or will the November 22 wick pull prices lower?
Watch today’s video to see how I’m trading the euro this week.
EURUSD remains range-bound ahead of today’s Fed rate decision and press conference.
The pair reached my 1.0350 year-end target on November 22 and has since traded above the 1.0450 support level.
However, euro bulls have shown little conviction this week, which isn’t surprising given the potential FOMC-driven volatility.
One notable factor is the lower wick from November 22.
These long wicks often signal market imbalances that price tends to revisit.
The question is whether EURUSD will fill the wick at 1.0350 after today’s FOMC.
As noted in yesterday’s Weekly Forex Forecast, a daily close below 1.0450 would likely target 1.0350.
This would require the DXY to close above 107.10, opening the door to 108.00.
On the flip side, a bullish move from EURUSD would keep it range-bound between 1.0450 and 1.0615.
The best approach is to stay patient and let today’s volatility play out before considering any trades.
