Key forex and gold levels to watch for today's FOMC interest-rate announcement
The Fed’s much-discussed decision on US interest rates is clearly the main market-moving event today. However, a good understanding of the key technical levels provides a framework for trading major forex and gold. Let’s look at some charts.
AUD/USD: the most important resistance is seen at 7190/7200 today. We are getting overbought in the bear trend so failure to beat strong resistance targets 7160/58, 7135/31 then good support at 7090/86. A break above 7210 targets 7270 then 7320.
EUR/USD: there is good support at 1.1230/25 but a break below targets 1.1200/1.1195 and then good support at 1.1150/45. The first resistance is at 1.1325/30 but a break above this level targets resistance at 1.1385/90 then 1.1470/75.
USD/JPY: there is resistance at 120.85/90 today but a SUSTAINED break higher targets last week’s high at 121.32, then two-week highs at 121.74. Support is at 119.85/80, then 119.40/35, then 119.10.
Gold: strong resistance at 1124/25 is key to direction as we become overbought in the short term. However, be ready to buy a break higher to target 1133/36 and strong resistance at 1140/41. There is support at 1116/1115. A break below this level is more negative and targets 1108/1104.
GBP/USD: there is strong moving average resistance at 1.5525 but a move above this key level meets the next target and resistance at 1.5605/15. There is support at 1.5453/50, then 1.5405/00.
Jason Sen – Technical Analyst & Trader
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