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U.S. stocks closed at the low of the session, and in doing so set up a move from Asian markets that may initially sell the dollar profit, but then fairly quickly return to what traders saw on Monday; Usd buying. The commodity pairs (aussie and cad) were sold to their daily trading range limit, while European pairs were sold less than their average daily amounts.

Traders need to keep in mind the fact that last week most of the majors pairs averaged less than 50 pips of movement in five days. It will be highly debatable whether the World Bank growth forecast will be able to hold the major pairs where it pushed them on Monday; history does not garner too much respect for the WB forecasts, and as such the Sunday headline may have created an over-reaction in the near-term.

As such, we will be looking for Asian markets to hold their channels ranges, and we will then get ready to buy or sell the next moves to support or resistance as each major market opens at 20:00 EDT, 02:00 EDT, and 07:00 EDT. Unless the initial momentum of each session is caught/monitored it seems that a game of catch-up is played during the session waiting for the next momentum surge to hit. Volume is low, Average Trading Ranges are dropping, Relative strength Index reads are neutral, and most pairs are at major swing points.

Ahead of a very important FOMC rate decision, and in particular a Fed statement that will be scoured for clues as to the way that Treasury yields (market-wide interest rates) can be reversed off 4% while at the same time record numbers of notes are bought, the dollar may not be able to garner too much more buying interest before a technical reversal. Unless of course global equity markets implode with another 2% plus haircut in valuations. Interest rates are a major issue for dollar values, and controlling them may be just a little like the Fed opening Pandora's Box.