EUR/USD: Indecisive breakout, focus on the FOMC rate decision

The EUR/USD's daily chart shows an indecisive falling wedge breakout.
1.15 is the level to beat for the bulls.
The Fed is expected to keep rates unchanged today and is seen setting the stage for a December rate hike.

Omkar Godbole FXStreet Contributor

The EUR/USD closed at 1.1426 yesterday, confirming a falling wedge breakout.

That breakout, however, is looking indecisive, as the pair charted its way to bullish breakout via a doji candle.

As a result, the EUR bulls have a new level to beat - 1.15 (previous day's low). A close above that would confirm a bullish reversal. On the other hand, the bears could make a strong comeback if today's candle closes below 1.1395 (low of yesterday's doji candle).

That said, a close below 1.1395 looks likely as the Fed-ECB monetary policy divergence is set to grow further in the near future. The Fed is likely to keep rates unchanged today and signal a December rate hike.

Even so, the greenback may take a beating if the policy statement shows increased sensitivity to the recent drop in the stock markets.

EUR/USD Technical Levels

EUR/USD

Overview:
    Last Price: 1.1425
    Daily change: -14 pips
    Daily change: -0.122%
    Daily Open: 1.1439
Trends:
    Daily SMA20: 1.1449
    Daily SMA50: 1.1552
    Daily SMA100: 1.1584
    Daily SMA200: 1.1852
Levels:
    Daily High: 1.15
    Daily Low: 1.1395
    Weekly High: 1.1456
    Weekly Low: 1.1302
    Monthly High: 1.1625
    Monthly Low: 1.1302
    Daily Fibonacci 38.2%: 1.146
    Daily Fibonacci 61.8%: 1.1435
    Daily Pivot Point S1: 1.1389
    Daily Pivot Point S2: 1.1339
    Daily Pivot Point S3: 1.1284
    Daily Pivot Point R1: 1.1495
    Daily Pivot Point R2: 1.155
    Daily Pivot Point R3: 1.16

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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