Market Volatility: Cautious Approach Advised Amid Mixed Signals

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Market Volatility,Fed Announcement,Technical Indicators

A recent market decline following the Fed's announcement has sparked mixed signals in technical indicators. The analyst cautions against premature calls on market direction and recommends observing price action in later trading sessions.

The price of a particular asset remained resilient despite recent market turmoil, finding support at the 21340.75 level. While technical indicators show mixed signals, with MACD generating a bearish signal and RSI remaining positive, a definitive bottom cannot be called yet. The analyst advises observing price action in European and US trading sessions for clearer direction. Potential bullish setups include the price testing and holding 21340 again or pushing above 21608.

Alternatively, a break below 21340 without reversal could signal a bearish trend. The analyst notes that the recent market decline following the Fed's announcement was likely fueled by market positioning rather than a significant hawkish shift from the FOMC. The Fed's updated rate projections were not drastically different from market expectations, and the anticipated funds rate bottom is higher than the Fed's projections.

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