As the FOMC release draws closer, the markets lay in wait. The temporary suspension in movement can be seen across the board with especially commodities and indices playing the range or simply trading to technical levels. Gold, Silver and Oil have been hovering around the same regions for the past trading days. Even the technical tool known as the Bollinger bands have compressed on a majority of indices signalling an impending break later this evening.

While currencies and instruments briefly halt. There have been various discussions on the tone of the FOMC meeting today. There seem to be two sides to this coin. The first side is that it may be too early for a hawkish tone because the US still has two more NFP reports before the big September meeting. If this is truly the case, then today's predicted hawkish tone may be nullified and turned neutral. Such may result in USD weakness.

On the other hand the barrage of positive news releases in the States and the statement Yellen made earlier this month may simply reinforce the hawkish tone as the FED conveys a positive outlook about the US economy, keeping the commitments to raise rates. The hawk will cause USD strength across the board.

With a few hours before the release, some technical levels have been identified.

GOLD

Gold has found some resistance below the 1110.00 level and currently resides in a daily wedge. Secondary resistance has been created below the weekly pivot of 1101.43. Even though current market conditions are flat, the technical indicators still suggest gold is bearish as long as prices keep below 1110.00. Post FOMC may offer excellent opportunities as the key level have already been identified with secondary support at 1090.0.

Intraday – Gold is intraday flat. This precious metal lays in wait for the release this evening. Intraday resistance is at 1099.0 and intraday support around the 1092.0. The best strategy may be to utilise the breakout once a solid hourly break has been established either above or below the support.

WTI

WTI declined to the lows of 46.66 before hovering back below 48.00. This is bearish and global events have added more selling pressure to this commodity. Technical indicators point for a further decline as long as bears keep below 50.00. Even though prices trade below the 20 SMA and the MACD is still to the downside, there has been some support at the weekly S1. This evening should provide the additional volatility needed, for a break or a healthy correction.

Intraday – Just like other commodities, WTI is intraday flat. Some resistance can be observed at 48.0 with light support around 47.00. The best strategy may be to utilise the breakout once a solid hourly close has been achieved, above or below the intraday support/resistance levels.

FTSE100

The FTSE100 recovered from the 6500 supportive level in yesterday session. A daily bullish engulfment was experienced followed by a further incline to the daily R1 in the early sessions of this morning. The range discussed on Friday’s market review still holds. Strong resistance at 6800 and support at 6500. One can play the range until a break is achieved.

Intraday – Price action has been quite passive intraday. 6600 acts as a sticky level for now. Intraday support can be found at 6575 and some resistance just above 6600. A clearer picture may be present post FOMC.

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