Elliott Wave: Stocks step into correction, BTC drops, can Dollar rally? [Video]

Gregor Horvat Wavetraders

Last week, stocks dropped and then turned sharply lower, in line with cryptocurrencies, after Trump threatened to impose new tariffs on China, after China introduced tighter export controls on rare earth metals. It looks quite similar to what we saw back in April, when stocks also dropped sharply because of tariffs — usually that’s the normal reaction with fear, when the first news hits, but once the dust settles, we can expect some stabilization. There’s still some optimism that could return this week since President Trump and the Chinese President are still expected to meet.

What’s important to note is that the S&P 500 is now stepping into a new corrective wave four, that is still in progress. During this risk-off phase, the dollar , which interestingly didn’t move much on Friday, could still gain some ground in the near future as investors look for safety, not only in metals but also in cash.

For more updates on our latest Elliott Wave outlook, make sure to check 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.

GBP/USD clings to gains near 1.3400

GBP/USD retreats after reaching a three-week high above 1.3430, challenging the 1.3400 yardstick on Thursday. Although easing political uncertainty in the UK helps the quid limit its downside, escalating tensions in the Middle East support the Greenback, keeping Cable under scrutiny.

EUR/USD: Daily gains appear capped by 1.1450

EUR/USD keeps the recovery in place and looks to consolidate its gains north of 1.1400 the figure at the end of the NA session on Thursday. The pair’s move higher appears in tandem with a modest pullback in the US Dollar despite geopolitical concerns in the Middle East remain unabated.

Gold flirts with two-day highs, approaches $4,130

Gold stages a modest rebound on Thursday, setting aside a three-day losing streak and managing to surpass the $4,100 mark per troy ounce. However, steady geopolitical tensions have revived concerns over persistently high global inflation, reinforcing expectations of higher rates across the board and somewhat curtailing the yellow metal’s upside potential.

AAVE eyes $100 after Stable Vaults launch

Aave edges higher above $90.00 at the time of writing on Thursday, amid broader price stabilization in the crypto market. The company has announced Stable Vaults, a platform that allows businesses to integrate fixed-rate stablecoin yield, mildly lifting sentiment in the ecosystem.

Japan may be changing its Yen strategy, but markets don’t look scared

Japan may be changing its intervention playbook, but that might not be enough to rescue the battered Yen. With USD/JPY hovering at four-decade highs, the currency’s weakness is being driven less by speculative pressure and more by a powerful structural force: the wide US-Japan rate gap.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.