Elliott Wave shows more weakness for the USD once higher pullback is finished [Video]

Gregor Horvat Wavetraders

At a start of a new trading week stocks have seen a new drop after the Trump administration reaffirmed that it will stick to its planned tariffs, fueling fears of deeper global economic fallout. And it seems that markets are beginning to price in the potential for a recession, with risk sentiment taking a hit across the board. After last week’s sharp drop in US markets, Chinese stocks are now following lower, despite China imposing its own retaliatory tariffs. President Trump remains confident these moves will ultimately boost the US economy, but he is also calling for lower interest rates—something the Fed is not yet ready to deliver as highlighted by Powell last week, saying that they are not in rush.

With markets seemingly pricing in a recession, the key question is: when will we see stabilization? In my view, markets may not find a bottom until we see hard data confirming the economic slowdown, because thats when CB will cut, if not earlier. The first estimate of Q1 GDP is due on April 30, followed by the Q2 release on July 30. These reports could be the catalysts that shape expectations moving forward.

Regarding my USD view, I think weakness will resume after current bounce.

For more of my latest Elliott wave outlook on Dollar, cryptos, gold, crude, SP500 and more check out 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

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

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.