Elliott Wave live: China on the move [Video]

Gregor Horvat Wavetraders

Hello everyone! I hope you enjoyed the weekend and are ready for some new market action this week. We’ll kick things off with European CPI data and a Powell speach later today. Additionally, we’ll be watching the US ISM Manufacturing and Services PMI, but the most important data will come on Friday with the US NFP report.

Also, lets keep in mind that today is the final day of the month and quarter, so we could see some volatile price action. Those end-of-month flows tend to reverse in a few days, especially at the start of a new trading week. So, if we see a sharp dollar selloff today, there could still be some support later this week.

From an Elliott Wave perspective, the Dollar Index still shows a nice ongoing ending diagonal, and we’ve been expecting a final push to the downside, which now seems to be playing out. These patterns often lead to strong reversals, so don’t be surprised if we see the markets turn around soon, especially if stocks experience pullbacks after last week’s strong gains, driven by China’s stimulus policies.

Last week there was also sharp turnaround from 146.50 on USD/JPY following Shigeru Ishiba’s win to become Japan’s prime minister, who favors a strong JPY and higher rates. And I’m seeing very clear reversal patterns on several yen crosses, signaling potential for more donwside. This could present opportunities on the short side of these pairs, especially if stocks also turn lower this week for a pullback.

I talked about this and lot more in our video below.

Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.

Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.