The markets are a bit quiet ahead of tomorrow's highly anticipated FOMC meeting. A strong EUR/USD and weakening US bond yields are confirming the 20% chance of an 18th rate hike tomorrow. EUR/USD has been well contained in the July and August uptrend channel and it appears we are looking at the fourth test of support before the trend continues.

Let's look to get long EUR/USD on the channel test of 1.2835, as well as the .618 Retracement at 1.2825. Stops should be around 1.2795 and initial target is 1.2880. If our first target is met, book profits on a partial position and trail your stop to breakeven. Be back tonight with an update before Asia.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.