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.
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.
