Can EURUSD break out following Wednesday’s FOMC, or will bears hold key resistance?
Check out today’s video for the EURUSD key levels to watch, potential trade ideas, and the latest on the US Dollar Index (DXY).
EURUSD is testing key resistance today at 1.1140.
This is both the December 2023 high and the ascending diagonal from July 17th.
Frequent readers will recall that EURUSD lost the 1.1140 support area in late August, turning it back into resistance.
However, as mentioned in Monday’s Weekly Forex Forecast, the euro closed last week above the 1.1000 critical support level.
This leaves EURUSD range-bound ahead of Wednesday’s Fed rate decision.
At the same time, DXY is testing its range support at 100.60.
But US dollar bulls need to reclaim the 102.60 area for the greenback to become constructive again.
Until then, it’s a range-bound market, much like EURUSD.
These are ranging markets until proven otherwise, so trading them accordingly makes sense, in my opinion.
With Wednesday’s FOMC likely to bring intense volatility, waiting for things to settle before trading is wise.
