FX.co ★ Euro consolidates ahead of the Fed

EURUSD H4 scale

The euro is predictably forming a range before the release of data from the Federal Reserve on Wednesday at 19:00 London time.

What to do before the Fed? Conservatively, one should wait for the announcement of the Fed's statement, the first reaction of the market - several hours - and then make a decision to buy or sell the euro.

Aggressive - before the release of the data, you should choose convenient range boundaries on the hourly or 4-hour chart no earlier than 15 minutes in advance - depending on how the current picture looks - and place long and short positions of the buy stop | sell stop - to break through the boundaries of the range. You can set both stop and profit, for example, 45 points each in a 4-digit quote system. After the start of the movement, you can reduce the size of the stops.

Forecast: I think a sharp rise in the euro after the release of the data is more likely.

If the euro really goes down a lot, there is still no big potential for the downside, you need to look for buying points.