Dollar Weakness Looms as Fed Decisions Create Breakout Opportunities
John Fortune's latest weekly outlook for forex markets points to dollar weakness due to recent Federal Reserve interest rate decisions. As the fed funds rate is projected to settle near 3.5% by the end of 2026, traders are preparing for short-term dollar decline. This shift creates high-probability breakout opportunities across major currency pairs in the coming weeks.
For EUR/USD, John expects the pair to test the critical 1.1200 resistance level as eurozone inflation stabilizes near the ECB's 2% target. Meanwhile, GBP/USD remains sensitive to the Bank of England's cautious rate stance, making buy-on-dip strategies attractive near the 1.3150 support zone.
USD/JPY is another market worth watching, with the Bank of Japan's interest rate hikes having pushed the pair down from its historical peaks. According to John, looking for short positions on USD/JPY if it rallies back toward the 143.50 resistance area could yield a drop toward 138.00.
Gold and Bitcoin are also covered in this outlook. Gold continues to shine as lower global interest rates and geopolitical risks support its upward momentum. With spot gold hovering near $2,620 per ounce in late September, John anticipates further consolidation before another push toward $2,700.