Good morning, traders! Crude oil is losing momentum, while stocks have recovered somewhat. However, with the US dollar and yields moving higher, some risk-off pressure may persist ahead of tomorrow’s Fed meeting.

Markets could become more volatile from Wednesday onward, with several key central bank decisions, including those from the BoC, RBNZ, ECB, and BoJ. The AI trade will also face a test as Alphabet and Microsoft report on Wednesday, followed by Amazon and Intel on Thursday. With several major catalysts approaching, this may be just the calm before the storm.

From a technical perspective, US yields have completed a five-wave decline, opening the door to a potential intraday three-wave ABC recovery. Meanwhile, the 10Y US Notes chart could see a corrective slowdown, which would support the US dollar, at least temporarily.

The US Dollar Index (DXY) is already showing signs of recovery, with potential upside toward the open, unfilled gap near 102.54 as part of wave "b". Alternatively, the recovery could extend back toward the previous highs in wave 5.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.