Top three charts ahead of FOMC decision: US100, GOLD, DE30 (15.12.2021)

Traders are waiting for the FOMC decision scheduled for 7:00 pm GMT. Volatility is expected to be elevated across many markets. US100, GOLD and DE30 usually experience big moves after Fed meeting.

US100

Let’s start today’s analysis with the US tech index - Nasdaq-100 (US100). Looking at the H4 interval, one can see that the index did not manage to break above the key resistance zone at 16,440 pts and bigger doward move occured. The price dropped below the support near round 16,000 pts handle, therefore downward correction may accelerate. According to the classic of technical analysis, as long as the price sits below, the attack on the 15,570 pts level is the base case scenario. Should the break below this level occur, the downward correction may deepen towards support around the 15,290 pts area. On the other hand, a return above the aforementioned 16,000 pts level may herald a resumption of the upward trend. 

US100 H4 interval. Source: xStation5

GOLD

Next, let's move to the gold market. Looking at the  D1 interval, the price of this commodity has been moving sideways recently. However, looking at the chart from a broader perspective, one can see that the recent downward move stopped at the key support area around 1,760 - 1765$ which is crucial from the mid-term perspective. According to the Overbalance methodology, bouncing off this support may herald a resumption of the upward move. On the other hand,if buyers will not show determination, the continuation of the downward move is possible. Should the price break below the aforementioned support area, the sell off may accelerate towards next support at $1,725. 

GOLD H4 interval. Source: xStation5

DE30

Last but not least, let’s take a look at the German index - DAX (DE30). Looking at the D1 interval, one can see that the recent downward correction stopped at the key support arouind 15,090 pts. This level is marked with previous price reactions, lower limit of local 1:1 structure (blue rectangles), and 78,6% Fibonacci retracement. In theory, as long as the price sits above, the buyers have a chance to resume the main trend. However, bulls need to push the price above the round level of 16,000 points in order to initiate a bigger upward move.On the other hand, breaking below 15,090 ps area could pave the way towards sharp correction. Considering the bearish scenario, the next potential support lies at 14,200 pts, which coincides with the lower limit of the bigger 1:1 structure (red rectangle). One should also pay attention to a horizontal support at 14,800 pts. 

DE30 D1 interval. Source: xStation5