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

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.