4-Hour Analysis:
Big Picture: As the FOMC meeting approaches, price has yet to identify a directional trend. Price was rejected from the range top once again, extending the range-bound situation. However, the scenario is likely to change now that we are approaching a trigger in the shape of the FOMC. Going forward, there is a good likelihood that price will seek liquidity in both directions before making a long-term trending move. Higher volatility is expected to follow.
On Upside the day’s initial resistance is seen near 29,900-30,100. Above here, we have the 30,500-30,800 barrier, which has been denying upside since May 11th. Another sell-off occurred yesterday as the price failed to break above this level. However, this level must be breached in order for a sustained upward movement to occur. Successfully breaching this level opens the door to more upside towards 31,050, then 31,850. Holding over 31,850 triggers a strong advance into 32,680, followed by 33,700.
On the Downside, The CME gap was established as a price goal and was filled yesterday. However, first support may be found at 29,050. Following that, we have lower levels of support at 28,640 and 28,200. These are fairly solid support levels, but if they are breached, price will most certainly hit 27,880 and possibly 27,475.
