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EURUSD Settles into Key Support Ahead of FOMC

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EURUSD has been on a tear in recent weeks. The single currency is up more than 500 pips from the March 10th ECB low and is currently finding support at the 1.1340 handle.

I mentioned this level in the most recent weekend commentary, noting that it could offer a favorable buying opportunity if tested before the next leg up. The bullish price action on the 4-hour chart could be what the bulls need to push the pair back to October 2015 highs.

The 1.1490 area is represented by several highs from February as well as mid-October of 2015. Just above that, we have former channel support that extends from the 2015 low, a level that is arguably stronger than 1.1490.

However, with FOMC on tap at 2 pm EST, buying this or any US dollar pair is risky, to say the least. As such, I prefer waiting to see how the single currency reacts throughout the event as well as how the day closes before considering an entry. Any bullish price action from current levels could provide a favorable opportunity to get long.

Alternatively, a close below 1.1340 would negate the bullish bias and could set up a favorable selling opportunity. Should the pair give up the 1.1340 handle, 1.1210 is the next support that would come into play.

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EURUSD key support and resistance ahead of FOMC

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