HomeContributorsTechnical AnalysisEUR/USD Shows Bullish Formation ahead of FOMC

EUR/USD Shows Bullish Formation ahead of FOMC

Russia’s Gazprom announced that it will slow flows on its Nord Stream 1 pipeline and that they will halt another turbine in the pipeline to Germany, which will reduce the flow to just 20% of capacity (currently at 40%) from July 27. This can cause plenty of issues in Europe so stocks turned down recently due to recession risk. However, DAX is still holding and doing quite well above that 13k support level, while the EURUSD also remains in uptrend. From an Elliott wave perspective, we see EURUSD pair in a minor intraday consolidation from where we expect a break to the upside as that bounce from parity unfolded in five waves. However, there is always a chance for a more complex correction especially as traders will likely wait on the sideline till the FOCM tomorrow. So if we see more weakness, the deeper support is at 1.01.

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