Elliott Wave shows more weakness for the USD once higher pullback is finished [Video]

At a start of a new trading week stocks have seen a new drop after the Trump administration reaffirmed that it will stick to its planned tariffs, fueling fears of deeper global economic fallout. And it seems that markets are beginning to price in the potential for a recession, with risk sentiment taking a hit across the board. After last week’s sharp drop in US markets, Chinese stocks are now following lower, despite China imposing its own retaliatory tariffs. President Trump remains confident these moves will ultimately boost the US economy, but he is also calling for lower interest rates—something the Fed is not yet ready to deliver as highlighted by Powell last week, saying that they are not in rush.

With markets seemingly pricing in a recession, the key question is: when will we see stabilization? In my view, markets may not find a bottom until we see hard data confirming the economic slowdown, because thats when CB will cut, if not earlier. The first estimate of Q1 GDP is due on April 30, followed by the Q2 release on July 30. These reports could be the catalysts that shape expectations moving forward.

Regarding my USD view, I think weakness will resume after current bounce.

For more of my latest Elliott wave outlook on Dollar, cryptos, gold, crude, SP500 and more check out video below.

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