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.

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Author

Gregor Horvat

Wavetraders

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

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.