Then again, watch the dollar

With my other comments about the euro and gold, I need to look at the dollar chart again. Its recent turn down was neatly from the .786 Fibonacci retrace back up to the 88.46 highs, meaning it reversed after poking just above 86.15. This makes the reversal at this key level look bearish.

Countering that is my other Fibonacci setup that indicates a target for the US dollar up to and possibly above 91. Obviously for that to happen it needs to regain that .786 level of 86.15. If and when it does that, the dollar turns bullish again. It can also help that the dollar's low today was at a level that makes a nice parallel channel for the recent uptrend, so it may receive channel support too.

So ... the dollar, and the euro and gold, are all at key levels right now. And, just in time for the FOMC tomorrow ...! Investors and traders, we need to stay on our toes!