EURUSD Attempts to Break Out of Triangle Ahead of FOMC Meeting Minutes
EURUSD is trading slightly higher in today’s trading ahead of the FOMC meeting minutes which are due to be released later today. As of this writing, the currency pair is up by 0.16% as it trades around 1.0941.
Scheduled to be released at 7:00 pm GMT, market participants will be looking for clues as to what the Fed will do next. Specifically, investors will examine the minutes to gauge if negative rates are being considered by the central bank. Should this be the case, the dollar could weaken and push EURUSD higher. On the other hand, if the minutes reveal consistent information to what we’ve been hearing from Powell (negative rates are not an option), EURUSD could fall.
On the 4-hour time frame, it can be seen that EURUSD has been making lower highs and higher lows. Consequently, a symmetrical triangle has become apparent. When you enroll in our free forex trading course, you will learn that this is considered as a neutral indicator. That is, until it breaks out.
With that said, keep tabs on yesterday’s highs around 1.0975. A strong close above this price level would effectively break resistance at the top of the triangle. It could mean that buyers are dominating and EURUSD could soon rally to its May 1 highs at 1.0989.
On the other hand, reversal candles around the current price level at 1.0940 could mean that there are still sellers in the market. Should this happen, EURUSD could fall to the bottom of the channel around 1.0800 where it also bottomed on May 18.