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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