Hey traders! It's FED day and after recent intraday drop within a leading diagonal formation on USDollar index - DXY, it may face a bigger ABC corrective recovery before a continuation lower. We may not see straight lines, because it's expected that FED will do nothing and that interest rates will remain unchanged, so it will a lot depend on what they are going to say at the press conference. So, be aware of some shake-out, where wave B may firstly fill the GAP at 107.45 level and then it can jump for wave C into 108.50 – 109.00 resistance area before strong bears show up. However, if FED surprises with a rate cut today, then DXY can go straight lower, while SP500 straight to all-time highs.

For a detailed view and more analysis like this, you may want to watch below our latest video analysis recorded on January 25: