The Minutes for the most recent FOMC meeting can be interpreted to mean heightened possibility of QE3. However, the initial reactions in equities and currency markets do not align with this belief.

SP500

The S&P500 for example fell to new lows for the day and week in the hour following the event risk. It is now coming up against the rising trendline from June.

The EUR/USD also slide to new lows, close the 1.22 handle after the minutes maintaining the bearish momentum we had since last Friday after the poor NFP.

Below 1.22, the market continues a bearish outlook toward the 2010 low near 1.19, or maybe the 1.20 psychological barrier above that.

EUR/USD

Gold also slid immediately after the release, but really, has not found a direction in recent trading. When you look at the daily chart, you see a sideways market, at range support, maybe with a bit of congestion in lower highs and higher lows.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of rex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.