EUR/USD: Waiting For FOMC
Admirals | Sep 16, 2013 07:00AM ET
Two weeks ago, the price drew a hammer candle on a weekly chart. This forced traders to buy, which helped the price to create a long bullish candle last week. For all five trading days, EUR/USD respected the Fibonacci levels which have been measuring the bullish retracement of the downswing that started on the 20th of August. Bullish correction finally stopped below the 61.8—the level that has been a strong resistance since Wednesday.
This week will be all about the FOMC on Wednesday. The FED decision will have a huge impact on the market, and has been highly anticipated since the last few months. The rest of the data will just have a minor impact, and should be ignored.
Monday starts with the long bullish gap for more than 60 pips. This gap is a result of the optimism after Lawrence Summers decided not to vie for the FED Chairman position, and as well as due to the peaceful way of resolving the conflict in Syria. This gap is likely to be closed; so we can anticipate a retracement to the 61.8 level to test the recent resistance which will now be the closest support.
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