The focus this week is firmly on the FOMC and markets appear to be getting a little nervous. On Monday we saw a decline in the USD and a stock market sell-off.

On the forex front, there were some strong moves and we saw the GBP get a jump because of some developments on the Brexit front. That also translated into some positive momentum in the EUR.

Bitcoin has managed to avoid the wolves for another day. It rallied off the lows and made-up around $1000 over the course of the session. It was a rough weekend for digital currencies and things are interesting at the moment.

Key Resistance

Another day and again the USD can’t crack through those overhead resistance levels. Not that we were expecting a big move higher, it’s just that there seems to be no interest at the higher levels at all.

My big fear now is that we are not going to fire a short when the FOMC decision comes in and that might mean further downside for the USD.

If we test and hold below 89.50 this session, then I think we are going to be looking at a test of the lows. The FOMC might just be the trigger.

US Dollar Index (DXY)- 240 min Chart.