Stocks Are Turning Down After Three Wave Rally US yields are coming higher once again and looks like new high can show up soon, and this is something that is drving the USD higher. Even stocks are coming down this morning, cannot handle the USD strenght anymore so it appears that we ahve some risk-off flows at the moment which can last a few more sessions.
The elliott wave A-B-C rally on SP500, NASDAQ100 and even DAX is not looking good for the bulls.
Grega
Usyields
US 10Y yield convergence of resistance levels around 4.19/20We have a convergence of levels around the 4.19/4.20 zone of the chart, it is a long term double Fibonacci retracement and represents significant lows seen in 1998 and 2001.
Will be quite interested to see if the market pauses here in order to consolidate sharp gains that have been pretty relentless since August.
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When USD Hits Resistance, That's When USDMXN Will Breakdown In today's video I will look into a detail analysis of USDMXN, which is doing quite well compared to the strong USD Index. So my assumption is that when USd index will hit resistance, possibly after the 10 year US notes completed the current fifht wave up, the USDMXN can easily break through the support and will be targeting Feb 2020 pandemic low.
Crude oil is also very important for the USDMNX. Price is higher for the last two weeks as the situation between Russia and Ukraine is getting worse. OPEC also decided in its first one-on-one meeting since 2020 to cut production by up to 2 million barrels per day from November. So it appears that EU will not have easy task to limit the energy prices.
If you like this video, please leave me a comment below and press like.
Thank you
Grega
QE Tapering Delay Can Support Gold #ElliottwaveFed's Kaplan noted that they are watching Delta variant, and says he may need to adjust view regarding tapering. This is very important for speculators who were recently betting on the USD as this can limit the USD strenght if it proves correct.
In such situation traders may turn back to gold where price recovered back to $1800 and even erased all of the losses after the crash from a two weeks back. Rally, in fact, is in five waves which is very bullish for metal. At the same time, we are looking at the TLT as confirmation regarding lower US yeilds/higher notes, while DXY can be trading at resistance of a three wave rally up from January.
Take care,
Grega