• EUR/USD resistance is found at 1.1072
• FOMC event risk could cause US Dollar pairs to breakout
• reversals begin under 1.1059
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The EUR/USD has moved to daily values of resistance this morning, ahead of today’s highly anticipated FOMC event. Currently resistance is found at the R4 , displayed above at a price of 1.1072. While prices have yet to attempt any significant breakout, traders will be looking towards today’s news at 18:00 to give the pair further direction. Expectations are that key interest rates are to be left at .25%, but any adjustments to this policy could have drastic affects for the EUR/USD and other US Dollar crosses. In the event of a breakout above the R4 , traders may begin looking for a 1x extension of today’s 27 pip range towards a price of 1.1089.
In the event that the US Dollar begins to rally, traders will look for a reversal in EUR/USD prices. A move below the R3 , found at a price of 1.1059, opens prices up to testing valeus of support. It should be noted that S3 range support is found at a price of 1.1032. As well, breakouts begin for the EUR/USD at 1.1019. A move to this point would be significant, as it would be the pairs first breakout since last Thursdays 252 pip decline. In this scenerio, traders should conclude that momentum has at least temproarily been suspended and begin looking for new positions based on the markets chosen direction.