Market picture did not significantly change.

After FED hawkish statement, USD is turning upward and gaining momentum. However, currency markets met the resistance area and slowed. This week the support for USD is likely to come from FED officials remarks. USD/JPY remains bullish, as EUR/USD is getting ready for break and deeper decline.

USD index meets some resistance zone

The Dollar Index has bounced from its lowest level since last November at 96.10, to gain back to 97.20. Resistance area extends from it to 97.75 and we can expect a kind of minor corrective decline ahead. Technical indicators indicates bullish divergence in USD index chart.

EURUSD is trying to hold above 1.1110

A bearish divergence is evident in the technical picture. A break of May low near $1.1110 would open the door to a deeper decline, triggering stops of speculators who had the largest net long euro position in last years. However, Euro is finding some support right above the resistance area.(1.1140)

Our recommendations to go short when market pullbacks.

Gold is turning oversold

Gold approached a strong support at 1250-1255. The corrective upward pullback from this level did take place as we expected. The next support is located at $ 1225- $ 1230 and market is slowly declining toward this level. Given all the fundamental and news background, we expect that the downward impulse will eventually be limited to the level of 1230, where medium-term demand will return to the market.

Our recommendation is out of the market.