Market Analytics and Considerations
Key Notes
A busy week lies ahead, filled with a wealth of crucial data for the US, UK, and EU interest rate policies. As speculators will place their bets on the FOMC decision, which is scheduled for a day late, the US CPI, which is due tomorrow, will be interesting data. From that of an Elliott wave standpoint, we continue to concentrate on the 10 year US notes, where we see price returning into a wave four. As a result, short-term weakening in bonds may boost the USD while stocks may decline.
Nonetheless, that only applies to a short-term adjustment; the USD’s relatively long trend is still downward, as evidenced by the EURUSD pair. Wave (C)/(3) may have reached its conclusion because the euro has been recovering nicely and forcefully from 0.9730, from which we may count five waves up. This is especially true if we take into account a divergence on the RSI and an ending diagonal here and in sub wave 5. As a result, a least three waves of a retreat from 1.06 to 1.07 may soon be in effect. Around 1.03, a next dip’s potential support level is located.
EURUSD Elliott Wave Chart source www.wavetraders.com
