EURUSD hits 1.14 today to continue the bullish week. Ahead of today's FOMC, the following gives insights based on Elliott wave theory.
December 19, 2018 | AtoZ Markets - After dropping to 1.127 last week, EURUSD has resumed upside hitting 1.14 early today. The FOMC is expected to hike the Fed fund rates to 2.5% from 2.25% amid a buoyant US economy. However, there are indications that the pace will slow down in 2019. The Fed will also release details regarding the economy and their interest rate policies over the next three years. The Forex market is often volatile during and after the meeting.
After advancing to 1.147 in November, Euro has moved back and forth within a range. The range-bound direction looks like a triangle pattern. The triangle pattern is expected to be the second leg of a bullish correction to 1.155-1.16 after the year-long bearish impulse wave ended at 1.1215. Above 1.1215, there is 1.1270 and both are important support levels. Unless price drops below these levels, it might eventually favor the bulls and break upside. It seems the triangle will have one more leg downside to complete the pattern. The chart below shows better.
EURUSD Elliott Wave Analysis and Important Price Levels
After three swings from 1.147, the price is making the 4th leg of a possible triangle pattern. 1.147-1.144 might act as a resistance zone to yet another bearish move to 1.13-1.132 before price finally break upside. Unless a dip below 1.1215-1.127 support zone happens, there is a big chance for a bullish breakout to 1.155-1.16 target. This forecast will be much dependent on how the market reacts and adjusts to today's FOMC meeting.
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