The Wednesday session was very rough on the US dollar, as the GDP numbers came out much softer than anticipated. Because of this, the EUR/USD pair rose all the way to the 1.12 level before the Federal Reserve announcement. It doesn’t matter at this point though, because we see far too much in the way of resistance all the way to the 1.15 handle. In fact, it is not until we get above there that we can serve buying calls. Any resistive candle between now and then would be a put buying opportunity in our opinion.
Looking at the FTSE, we fell rather hard during the course of the session on Wednesday, but we found that there is a trend line just below the coincides nicely with the 6900 level. Because of this, we are buyers of supportive candles in that general vicinity in order to take advantage of the longer-term uptrend. We have no interest in buying puts until we break down below the 6900 level.
Looking at the gold markets, we fell initially during the course of the day, but ended up finding enough support below to turn things back around and form a hammer. With this, the market looks as if it is going to try to break out above the 1220 level, which would be a very bullish sign. In the meantime, we think pullbacks should be ignored as we simply continue to consolidate.