Daily Price Action
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EURUSD Pressures Key Resistance Ahead of FOMC

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EURUSD has enjoyed a 500 pip rally over the past two weeks after falling more than 1,500 pips to start the year. However the pair now sits at a critical juncture ahead of the market-moving FOMC statement that is scheduled for 2pm EST.

I mentioned the 1.1035 handle days ago as a level of interest after the pair broke free from a descending channel that extends off of the April 6th high. The 1.1035 level represents the “line in the sand” so to speak between the bulls and the bears. A daily close above it could trigger a much larger rally over the coming weeks.

The timing between the technical outlook and fundamental impact of today’s events could not be more perfect. But as perfect as it may be, the ensuing volatility will be far from perfect for those attempting to trade through the news. For this reason I will be standing aside until the U.S. session closes before taking further consideration.

Note: Keep in mind that increased volatility for EURUSD will continue beyond today’s session as the situation in Greece intensifies. 

Summary: A daily close above 1.1035 would have us watching for bullish price action on a retest as new support. Key resistance from there would include 1.1270 and 1.1532. Alternatively, bearish price action from 1.1035 could trigger a move back to 1.0904 and possibly 1.0658.

EURUSD key levels on the daily time frame

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