Cross Asset FOMC Reaction levels To Watch
Cross Asset FOMC Reaction Levels to Watch
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USDJPY
USDJPY is in a sharp bearish impulse followed by a corrective rebound. The current bounce is testing into a retracement/resistance structure after the sell-off. The key question is whether this rebound is only a bear-market correction before a continuation lower, or whether price can reclaim enough structure to suggest a larger recovery.
EURUSD
EURUSD is trading near the lower part of its recent range/decline and appears to be approaching a measured support/equality objective area. The focus should be on whether the pair forms a reversal from this lower support region or breaks cleanly lower, which would confirm downside continuation.
S&P 500
The S&P 500 is in a controlled pullback/channel decline, not an outright breakdown yet. Price is moving lower beneath short-term resistance, with downside projections marked below. The important point is that it remains corrective within the structure, but reclaiming resistance would be needed to confirm a turn higher.
Gold
Gold is consolidating/correcting after a larger prior advance. Price is moving sideways – to lower beneath resistance, with downside projection levels marked. We are looking for a final downside test before a potential reversal, rather than chasing weakness immediately.
GBPUSD
GBPUSD is also in a corrective decline, trading beneath resistance with downside projections still active. The structure is similar to EURUSD: lower support/equality levels are in focus, but confirmation is needed before assuming reversal.
DXY
DXY is the relative strength chart on the dashboard. It is pushing higher and testing retracement and resistance levels after a recovery. The key issue is whether DXY can break and hold above resistance or whether it rejects there and allows relief rallies in EURUSD/GBPUSD/Gold.
Cross-Asset Market Message
USD strength is pressuring EURUSD, GBPUSD, Gold, and equities, while USDJPY is behaving differently due to yen strength / risk-off dynamics. Several markets are approaching measured objective zones where reaction risk is elevated.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!