Fragile Dollar awaits Yellen
For seven days DXY (Dollar Index) is trading below its 200 days MA line.
What keeps DXY from breaking its uptrend and from reaching to the next support zone (97.5–98$) is one line — A daily uptrend line (learn more about trend lines).
Today, when the Fed will announce their rate decision and their forward guidance, all eyes will be on the Dollar. Will the Fed boost it? Or deliver the final push that will break the trend?
What does it mean? EURUSD and Gold (GLD) are at junction points awaiting the Dollar’s move. EURUSD is on the verge of breaking out of a daily dowtrend and Gold is testing a critical support zone. Bearish move in DXY will help them both to extend recent rallies.
See my analysis for DXY, SPX, EURUSD, GLD, Oil and more in the pre-FOMC Weekly Markets Analysis video:
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