US Dollar Index Elliott Wave chart

Good day everyone. Markets remain quite volatile, with elevated US Treasury yields, hawkish Fed expectations and ongoing Middle East tensions keeping investors cautious. Technology stocks are showing some weakness sicne yesterday, while gold and silver are trying to recover as yields and the dollar stays trapped in a correction. Today, the focus will be on preliminary US consumer sentiment, but more importantly, inflation expectations. Higher inflation expectations could put renewed pressure on stocks and support yields and the dollar as FED can then be looking for more hikes as it also hinted thats possible, still this year, after reading the latest details from the FOMC minutes.

Now looking at the USD, is still pausing a bit here, and ideally, we are going to see a more complex and deeper wave four, especially as the price is now trying to break below the trend line support. So it's possible that the market will retest lower levels around 101 before potential stabilization shows up, maybe next week, if not earlier. But keep in mind that any deeper pullback here would still be temporary, just a pause within what could still be an incomplete higher-degree uptrend.