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The advance estimate of US Q2 GDP may affect the Euro in a big way today as can the FOMC decision. With Dollar Index reaching close to the 8-10 months old supply zone in 81.40-50, anything is possible now including a short term top for the Dollar. Keep cautious tonight.

Euro (1.3411) is testing the 200 week MA and the FOMC decision today may decide if it will hold or not right now though Euro looks ready for a journey to 1.33 or 1.31 in the next few days. Any attempt to bounce will face supply from 1.3475-1.3500.

Dollar-Yen (102.12) is trading close to the resistance of 102.25-30 with no strong bias and the price action here may decide if it will rise towards 102.80 or return to 101.50-10 levels. Euro-Yen (136.97) is trading sideways in 1.3630-1.3730 on the back of equally weakening Euro and a weak Yen but it may still drop further if fails to overcome 1.3770 levels in the coming days.

Pound (1.6949) has created a Marubozu weekly candle with strong bearish implication in the short term. If the prior pattern is maintained, then this ongoing correction may end near 1.6890-75 levels before reversing for another new high.

Aussie (0.9381) has been rejected from the higher levels just as expected and the 5-week long band of 0.9320-0.9500 may continue for a few more days.

Gold (1299.63) is trading lower. The correction that started from 1345 is still not over and has some room on the downside towards 1280.5. Long term bearishness is still in force while below 1350-1400. Falling to1280-1260 seems a possibility in the longer run.

--- Jul 31, 2014 ---