USD Awaits Volatile Price Action With FOMC And Rate Decision

EUR/USD

4 hour

The EUR/USD bearish correction continued lower and pushed below the 61.8% Fibonacci support level of wave 2 vs 1 (purple). Price might now retest deeper Fibonacci levels but a break below the bottom of wave 1 at 1.2155 invalidates wave 2. The FOMC statement and interest rate decision is expected to impact the US Dollar.

1 hour

The EUR/USD bearish momentum is probably a wave 3 (orange) and the current pullback could therefore be a wave 4 (orange).

GBP/USD

4 hour

The GBP/USD uptrend is building a bearish correction. A break above the key resistance (red) trend line could spark the continuation of wave 5 (blue) within wave C (purple).

1 hour

The GBP/USD could still be in a potential wave 4 (gold) correction although price did retrace to a deeper 61.8% Fib than usual. A break above the resistances (red) trend line could spark a continuation within wave 5 (orange) but a break below the Fib makes this wave pattern unlikely.

USD/JPY

4 hour

The USD/JPY was unable to break above the resistance trend line (red) of the larger triangle pattern. Price needs to break the support or resistance before a larger breakout is possible.

1 hour

The USD/JPY did break above the resistance (dotted orange) trend line but no momentum entered the market and price action remains corrective. A bullish breakout is needed before a wave 3 (green) is possible. A break below support makes this wave pattern less likely.