EUR/USD: Indecisive breakout, focus on the FOMC rate decision

• The EUR/USD’s daily chart shows an indecisive falling wedge breakout.
• 1.15 is the level to beat for the bulls.
• The Fed is expected to keep rates unchanged today and is seen setting the stage for a   December rate hike.

The EUR/USD closed at 1.1426 yesterday, confirming a falling wedge breakout.

That breakout, however, is looking indecisive, as the pair charted its way to bullish breakout via a doji candle.  

As a result, the EUR bulls have a new level to beat – 1.15 (previous day’s low). A close above that would confirm a bullish reversal. On the other hand,  the bears could make a strong comeback if today’s candle closes below 1.1395 (low of yesterday’s doji candle).

That said, a close below 1.1395 looks likely as the Fed-ECB monetary policy divergence is set to grow further in the near future. The Fed is likely to keep rates unchanged today and signal a December rate hike.

Even so, the  greenback may take a beating if the policy statement shows increased sensitivity to the recent drop in the stock markets.

EUR/USD Technical Levels