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FOMC Meeting Takes Currencies Back to Recent Extremes, Extends Gold's Corrective Bounce

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Wednesday's FOMC statement ­-- both anticipation for it, and reaction to it ­-- continued enhancing the volatility among several key markets

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The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.

Today's Highlight: Wednesday's FOMC statement - -- both anticipation for it, and reaction to it - -- continued enhancing the volatility among several key markets. It took currencies back to recent extremes, and extended gold's corrective bounce.

Dollar Basket
Dec Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Wednesday's open immediately broke under the 80.10 pullback limit that Tuesday's gap down had already tested. The drop extended down to 79.70. Rejecting almost any lower intraday low Thursday to close positive would seal a bottom.

Eurodollar
Dec Contract EC; (NYSEARCA:FXE)
Wednesday's open immediately broke above the 1.3000 bounce limit that Tuesday's gap up had already tested. The recovery extended up to 1.3100. Rejecting almost any higher intraday high Thursday to close negative would seal a top.

Gold
Feb Contract GC; (NYSEARCA:GLD)
Tuesday's premature reaction down to 1706.00 from only attacking the bounce's 1720.00-1725.00 objective was recovered Wednesday to actually touch 1725.00. Closing back under 1720.00 would signal the corrective bounce had ended, and under 1713.00 would signal momentum had reversed down.

Silver
Mar Contract SI, (NYSEARCA:SLV)
Wednesday's gap up to 33.25 eventually extended to fresh highs attacking the 34.00 target, which remains in-play so long as pullbacks now hold 33.50 as support.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Wednesday morning's gap down had been recovered back up to 149-00 before plunging in reaction to the afternoon's FOMC statement, through the 148-16 minimum objective to 147-30. Bounces should now hold test of 148-20 to maintain the decline's momentum, next targeting 147-00.

Crude Oil
Jan Contract CL; (NYSEARCA:USO)
Two consecutive days of barely piercing the 85.85 sell signal were rejected Wednesday by gapping up above 86.00 and extending higher to test 87.70. That fills the gap back to last week's "higher prior lows," so closing Thursday back under 86.50 would signal the bounce was only a temporary correction before resuming the decline targeting 81.85-82.50.

Natural Gas
Jan Contract NG; (NYSEARCA:UNG, (NYSEARCA:UNL)
The testing of Monday's 3.40 low extended Wednesday to slightly lower lows. Back above 3.48 would target 3.58, but the trend otherwise remains down.

Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com.
No positions in stocks mentioned.
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