Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

EUR/USD: FOMC Could Trigger Big Move Up Or Down

By Al BrooksForexNov 05, 2020 09:33AM ET
www.investing.com/analysis/eurusd-fomc-could-trigger-big-move-up-or-down-200543623
EUR/USD: FOMC Could Trigger Big Move Up Or Down
By Al Brooks   |  Nov 05, 2020 09:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/USD
1.14%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The EUR/USD Forex market on the daily chart reversed up strongly from a failed breakout below the bottom of the 4-month trading range. The bulls see this as a double bottom bull flag. Remember, I keep saying that reversals in a trading range are more likely than a successful breakout. This is another example.

EUR/USD Daily
EUR/USD Daily
The 2-day rally has been very strong. It should attract profit-taking today or tomorrow. That could lead to a 50 to 100-pip pullback. However, because the rally has been exceptional, there are many traders who are eager to buy a selloff. This should result in at least a small 2nd leg sideways to up.

The bulls want a strong breakout above the October 21 lower high and especially above the September 1 top of the 4-month range. If they get 2 closes above the range, traders will look for a test of the next resistance. That is the February 2018 high, above 1.25.

Can the EUR/USD abruptly reverse down to below yesterday’s low. Probably not. There should be at least a small 2nd leg up.

Overnight EUR/USD Forex trading

The 5-minute chart of the EUR/USD Forex market has rallied in a strong bull trend overnight. Because the rally has been parabolic and the day’s range is huge, many bulls will start to take profits. This should result in a 30 to 50-pip pullback within the next couple hours.

Once there is a 30 to 50-pip pullback, traders will expect the bull trend to transition into a trading range. At that point, some day traders will also sell rallies. But even after it evolves into a trading range, day traders will still prefer to buy pullbacks over selling rallies for the 1st couple hours.

There is an FOMC announcement at 11 am PST today. That can lead to a big move up or down in any financial market. Day traders should exit positions ahead of the report and wait at least 10 minutes before resuming trading.

EUR/USD: FOMC Could Trigger Big Move Up Or Down
 

Related Articles

Matthew Weller
Is The Jobs Market Finally Slowing? By Matthew Weller - Dec 01, 2022

Tomorrow brings the final jobs report before the FOMC’s highly-anticipated December meeting, where the central bank will decide between a fifth consecutive 75 basis points...

Al Brooks
EUR/USD: Bulls Need Upside Breakout Soon By Al Brooks - Dec 01, 2022

  The EUR/USD had an outside up bar yesterday, closing about the November 29 high. This is good for the bulls. However, the bulls need follow-through today. Outside bars are...

Scott Barkley
USD/CHF: Range Continuation By Scott Barkley - Dec 01, 2022

Bearish: USD/CHF is currently at 0.9422 in a channel in a range. If we can break the support here, we are looking for a continuation to the ATR target at 0.9352 with a further...

EUR/USD: FOMC Could Trigger Big Move Up Or Down

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email