Today’s forex session is best described as “active.” Formidable ranges have been observed across the majors, with traders taking a hesitant stance toward the Greenback. The EUR/USD is a prime example of this phenomenon. Rates have broken out to the bull, putting in a firm test of the 1.1500 handle. The rally comes amid a super-charged news cycle including a U.S. election and FED Interest Rate Statement.

EUR/USD Technicals

The daily technical outlook for the EUR/USD is beginning to shift after an overtly bearish October. Since rejecting 1.1300, four-out-of-five days have closed positive. This rally has produced between a 150-200 pip gain in rates and a session high of 1.1499.

Here are the levels to watch for the near session:

• Resistance(1): Bollinger MP, 1.1461
• Resistance(2): Daily SMA, 1.1499
• Resistance(3): Psyche Level, 1.1500

Overview: Thursday’s FED Interest Rate Statement will bring considerable volatility to this market. Rates are expected to be held static at 2.25%. This is a foregone conclusion, but the official statement will be scrutinized in anticipation of a coming December rate hike. Traders will be looking for words such as “restrictive” or “accommodating” to gauge the FED’s tone toward policy. If the status-quo policy of gradual tightening comes into question, then traders will engage the EUR/USD in mass.

For the rest of the week, it appears that 1.1500 is going to be a key technical level in the EUR/USD. If we see a break above this psychological barrier, a challenge of October highs near 1.1600 is highly likely.