The FOMC meeting will be held today. Some analyst believe the rate will remain the same while some think there will be a hike. Technically we look at EURUSD based on 15 March EURUSD Elliott wave daily analysis ahead FOMC.
15 March, AtoZForex – Fed chair Yellen holds a conference talk today. She will discuss about the economy and the Fed’s decision on the interest rate. Many analysts and economists believe the rate will be hiked. Amidst healthy employment data and increasing wage growth, the economy is healthy. A rate hike is a strong possibility. Fed does spring out some surprises against popular views. The rate hike decision could be extended till the next meeting.
EURUSD is one of the currency pairs usually affected by the Fed rate decisions. Negative report or statement from the Fed will be negative for the USD and bullish for EURUSD. The currency pair will go bullish if the rate is hiked. While having this knowledge, it’s important to look at the technical side with Elliott wave theory. This theory thrives, usually, before an event like this.
Our last three forecasts were perfect – price moving in our direction and getting to the levels we expected. Reversal levels we speculated were also almost perfect. In the last update, we noted that the long term bullish correction was completed. We used the chart below.
A breakout below was needed to confirm the bearish trend. This forecast was made before Draghi’s speech last week. With the breakout below, will the bearish trend continue?. The bearish trend will be strengthened if traders perceive Yellen’s speech today buoyant for the U.S economy. The chart below shows our next forecast amidst a rate hike decision.
15 March EURUSD Elliott wave daily analysis ahead FOMC
The chart above shows how price responded after peaking at 1.071. There could be a pullback before drop continues. 1.067-1.0685 are levels of retracement to watch out for. A strong rally above this level will negate our view and send price on a strong rally above 1.0715 peak. A strong dip below 1.04 will be seen if the bearish resurgence resumes.
Do you have other views in contrast to the ones listed or you want to compliment them further? let’s know by your comment below.
Don’t forget to share this analysis with people that matter to you.