Markets trade mixed on FOMC day

Euro Briefly Slips To 1.2050 Technical Support

The euro currency, along with many of its peers was trading mixed on Wednesday. This comes as the dollar briefly strengthened into the run-up to the Fed meeting.

Price action lost the support off the minor trend line and briefly fell close to the 1.2050 technical support.

However, price action was quickly rejected just above the 1.2050 level. The euro managed to recover the losses rather quickly.

The downside bias is likely to rise as the currency pair has failed to make any moves above the resistance area of 1.2177 – 1.2144 level.

However, considering that the Stochastics oscillator is likely to trigger a bullish signal, we could see another attempt to the upside.

The British pound sterling gave back some of the gains from Tuesday on an intraday basis on Wednesday.

Price action once again attempted to post new highs but failed to build up the momentum.

The consolidation near the 1.3700 level has resulted in a possible ascending wedge pattern.

If price action breaks lower, we could see a retest back to the 1.3050 level in the near term.

To the upside, GBPUSD will need to post strong gains to close firmly above the 1.3700 level of resistance.

WTI Crude Oil Bounces Off Lower Support Of Range

Oil prices remain flat for yet another day. Price action briefly fell to the floor near 51.87 from the sideways range.

But prices quickly recovered off this level intraday. For the moment, the sideways range remains intact and oil prices could settle in this range for a while longer.

The upside level near 53.77 remains untested yet in the recent few sessions.

The Stochastics oscillator has also turned flat currently underlining the sideways movement in the oil markets.

Gold Loses The 1850 Support Level

The precious metal was trading below the 1850 level just ahead of the Fed meeting. However, the declines coincide with the Stochastics oscillator also moving close to the oversold levels.

As a result, we could see price attempting to breakout above the 1850 level once again.

Above this level, gold prices will challenge the 21 Jan highs near 1874.05.

Only a strong close above this level could trigger further gains.

To the downside, the support level near 1817.79 remains in play and could put a lid on further declines.