Weekly forex forecast: All eyes on FOMC, stocks set to correct [Video]

John Fortune Get Me Trading

Forex pairs & markets covered in this week’s Weekly Forex Forecast & Forex Analysis:

USD (DXY), EUR, GBP, CHF, JPY, CAD, AUD & NZD.

EurUsd, UsdJpy, NzdUsd, AudUsd, Crude Oil (WTI), EurCad, CadJpy, AudJpy, EurChf, GbpChf, EurAud, EurNzd, SPX (S&P 500), Russell 2000, Nasdaq, Dow Jones, Nifty, XauUsd (Gold Analysis), XagUsd (Silver Analysis), Btc/Usd ( Bitcoin Analysis) & more!

Weekly notes

All eyes are fixed on FOMC this Wednesday as markets look likely to settle into Wednesday's meeting.

The USD goes into this week completely neutral, reflecting the upcoming policy meeting this week. The DXY is unlikely to find any real direction until Wednesday's meeting and this could well be true for markets across the board given the USD status as the world reserve currency.

The JPY remains the weakest currency having corrected from an over-entended sell off recently with the safe aven asset of the CHF gaining last week and transitioning from Bearish to Bullish (albeit Bullish/Neutral currently).

Stocks look set for a near term top over the next few weeks with profit taking likely to come in from the previous rally higher. Whilst the broader outlook for Stocks remains Bullish, a 3-5% pullback looks highly probably in the immediate term outlook.

With Wednesday's meeting having the potential to dictate the direction of markets for the next few months, an approach of being "reactive" (to the outcome of Wednesday's meeting) as oppose to "predictive" makes the most sense this week.

Patience is a virtue, and never more so than in FOMC weeks.

Author

John Fortune

Get Me Trading

John Fortune is a professional trader and Head Analyst at Get Me Trading. John has over a decade worth of experience in the Financial Markets and produces a Weekly Forex Forecast covering over 30 markets each weekend.

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