The Dollar is consolidating after a slow start to the week, but this appears to be a corrective phase, pointing to more upside ahead, particularly with stocks showing signs of further weakness. US futures are down this morning, likely influenced by escalating tensions between Russia and Ukraine. Recent news about the Biden administration approving long-range weapons has prompted a sharp response from Russia, including references to nuclear weapons, further fueling market uncertainty.

This ongoing uncertainty is expected to keep stock markets under pressure, providing support for the Dollar Index which can move up into the fifth wave after recent a-b-c retracement down to 106.30 support. 

For more analysis about the USD and connection with stocks, make sure to check video from yesterday. 

Chart

 


Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.

By using Wavetraders website, any services, products, and content contained here, you agree that use of our service is entirely at your own risk. You understand that there is a very high degree of risk involved in trading on the markets. We assume no responsibility or liability for your trading and investment results. The charts, and all articles published on www.wavetraders.com are provided for informational and educational purposes only!

By using the information and services of www.ew-forecast.com you assume full responsibility for any and all gains and losses, financial, emotional or otherwise, experienced, suffered or incurred by you.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD under pressure below 1.0600 as mood sours

EUR/USD under pressure below 1.0600 as mood sours

EUR/USD stays under selling pressure and trades below 1.0600 on Tuesday. The US Dollar finds fresh haven demand on escalating geopolitical tensions amid reports that Kremlin is threatening a nuclear response on Ukraine's use of Western missiles against Russia.

EUR/USD News
GBP/USD stays below 1.2650 after BoE Governor Bailey testimony

GBP/USD stays below 1.2650 after BoE Governor Bailey testimony

GBP/USD trades in the red below 1.2650 on Tuesday. Although BoE Governor Bailey said a gradual approach to removing policy restraint will help them observe risks to the inflation outlook, the sour mood doesn't allow the pair to gain traction.

GBP/USD News
Gold extends recovery toward $2,640 as geopolitical risks intensify

Gold extends recovery toward $2,640 as geopolitical risks intensify

Gold price builds on Monday's gains and rises toward $2,640 as risk-aversion grips markets amid intensifying geopolitical tensions between Russia and Ukraine. Meanwhile, the 10-year US Treasury bond yield is down more than 1% on the day, further supporting XAU/USD. 

Gold News
Canada CPI expected to rise 1.9% in October, bolstering BoC to further ease policy

Canada CPI expected to rise 1.9% in October, bolstering BoC to further ease policy

The Canadian Consumer Price Index is seen ticking higher by 1.9% YoY in October. The Bank of Canada has reduced its policy rate by 125 basis points so far this year. The Canadian Dollar navigates multi-year lows against its American counterpart.

Read more
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI

The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI

The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures