With the major bearish sentiment around I believe this has opened a great opportunity if you look at the data and patterns closely. DXY is now gone parabolic into extreme overbought conditions as people dump shares and hold US dollars, this acting as a double wamy against the overall market. But it is all in anticipation for the FOMOC and interest rate decision and people are betting on the at least a .5% rate hike with a possible another one to be confirm for june. Now if you step back from the bearish out look and see that it means the upside potential rises if everything thinks this way you might see some interesting points to be made for a Bull bounce. GDP figures have come out and they are down 1.4% it would be political suicide to slow the economy down more then it is because that will guarantee a recession and the blame to solely be on them. So with that in mind I believe we could see only a .25% raise and at most the .50% meaning a more dovish fed to try and keep us out of recession. This would in turn send markets higher as a more bullish outlook and as people buy stocks back the DXY (USD) will fall back to normal levels. Looking technically at the charts we have MAJOR bullish divergence on the RSI on the US100 and S&P with the AUD/USD just above major support with an engulfing bullish candle. So I'm personally Buying Citi mini warrants AUD/USD with .69c as my stoploss with a target at .75c.
Image above is the DXY showing overbought
Image below is SPX e mini showing divergence
