Good morning traders!
No major changes in the markets since yesterday. The AI-led rally on Wall Street extended into Asia, with semiconductor stocks driving another leg higher in global equities, while the yen weakened to its lowest level against the U.S. dollar since 1986. Risk-on sentiment appears to remain intact, which could keep the U.S. dollar in a gradual corrective phase, maybe even in a consolidation, while allowing stocks to extend their recovery, especially as Treasuries look poised for a larger recovery and yields continue to point lower.
Notice that the 10Y US Notes chart keeps rising within subwave (iii), so DXY could still face subwave (b) resistance, which may cause another intraday drop into subwave (c) to complete an (a)(b)(c) correction in wave “iv”. Ideal support is still around 100.60 – 100.40 area, while invalidation level remains at 100.
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