Brazilian Real consolidates

On the daily chart of the US Dollar versus the Brazilian Real, we can see that the price has been consolidating around the 55 day exponential moving average, which is currently around the 3.2629. The price is currently at the 55 day EMA from where it may try to bounce to the downside. If the price goes back down, its next support could be the 200 week exponential moving average around the 2.9380 level. To the upside, above the 55 day EMA we can see the 200 day exponential moving average around the 3.4214 level, which could act as its next resistance.

Corn tries to complete a double top

On the daily chart of corn we saw the formation of a double top pattern on the 55 day exponential moving average, which is running precisely at the 340.00 round number level. The confirmation line or signal line is the level at the 325.00. A breakdown of the 325 level could take the price of corn to the low at the 312.17 level. To the upside, above the 55 day EMA, its most relevant resistance could be the 200 day exponential moving average, blue line, around the 359.98 level. Another possible scenario is that the 325 could act again as support and the price of corn could stay consolidated within the current channel.

Gold in a bearish channel

Gold continues trading inside a bearish channel that we identified a few days ago on the daily chart. There is no clear direction in the middle term until the price of gold breaks out of the channel, either to the upside or to the downside. Today the price dropped to the 55 day exponential moving average, purple line, around the 1324.15 level and stalls there. The price may try to bounce to the upside from the current level, but it has been really oscillating around that moving average; therefore, it could also break it to the downside. To the downside, the next support is still the 1300 level. Below the 1300 level, the next support is the 200 day exponential moving average, blue line, around the 1269 level. Above the upper trendline of the channel, the high at the 1375.14 level could be its most relevant resistance.

Corn bounces from 55 day EMA

The 55 day exponential moving average or EMA could be used as a trend indicator, but it also acts as a support or resistance level, just like the 200 day EMA does. On the daily chart of corn we can see that the price has bounced twice to the downside from the 55 day EMA, purple line. If the price continues dropping, then the 325.00 could act as support followed by the 312.17 level, which could also act as support. Above the 55 day EMA, the 200 day EMA, blue line, around the 360.54 could act as resistance. Once the price goes above the 55 day EMA, it could consolidate and start bouncing in between the 55 EMA and the 200 EMA.

Bullish bounce on the Dollar

On the daily chart of the US Dollar Index, we can see that the price has been consolidating in a range, forming what it appears to be a symmetrical triangle. The upper boundary of the consolidation is around the 96.00 to 96.50 zone. To the downside, we can see that the lows of the candles have been higher than the previous ones, but a breakdown of the 95.00 level could take the index to the 94.00 level or the 93.00 level. Since yesterday the Dollar Index has been falling on the comments by the FED regarding interest rates, but once the index go to the 95.00 level, it stalls there and tries to bounce to the upside. For now the 96.00 level could act as its next resistance.

Good strength on the Yen

The Yen has strengthen today during the whole trading session, but especially during the FED’s announcement. The FED has not given a clear signal to the markets and that has created a lot of uncertainty among traders and investors. That uncertainty has created risk aversion and since the Yen is used as a safe haven instrument, it rises. On the daily chart of the USD/JPY we can see that today’s breakout was bearish and the price came very close to the 100.00 support level. The Bank of Japan has been taking a lot of care around the 100.00 zone, intervening at times to prevent the Yen from going higher. To the upside, the 102.00 level or the 103.00 level could act as resistance.

GBP/USD tries to break the 1.3000 level

The GBP/USD has been oscillating around the 1.3000 level, mostly inclined to the downside, but without a clear direction due to the fact that tomorrow we have the FED’s announcement. Whatever the decision may be for tomorrow in regards to the US interest rates, the Dollar crosses may exhibit high volatility. To the upside, the resistances at the 1.3100, 1.3200, 1.3300 and even the 1.3481 may be broken if the reaction after the FED is positive for the Pound. To the downside, the 1.2800 level may act as a temporary support for the pair in case of a bearish breakdown, but the momentum may take the pair even lower.