US markets turned bearish yesterday after the FOMC statement, which also caused some downside pressure on Asian stocks. We are looking at the S&P Futures chart where decline from the top could be unfolding impulsively. If we see fall to a new low from current levels then this will be wave (v) which in such case will mean risk-off mode for the sessions or maybe even days ahead.

Despite some weakness on stocks the USD index remains in a bearish mode, which should not surprise you as markets have been strongly disconnected lately. Therefore, we suggest traders to stick with EURUSD long opportunities and USDCHF shorts. Any USD Longs should work the best against commodity currencies, especially AUD.