The USD recovered last week following Powell’s testimony who said that it may be necessary to raise interest rates once or twice more this year.
So stocks came down at the same time, but there can be stabilization, not far away, since I see DAX coming down into 15630-15700 supports where index can bottom at start of the week as five wave impulse from ATH appears to be in the final stages of a bear run.
Also, if DAX would really stabilize then I think commodity currencies can see some nice recovery, especially NZD after China said that they are willing to push trade developments with New Zealand.
From an Elliott wave perspective NZD/USD shows a nice bullish set-up with five waves up and now three wave set-back.
Not only Kiwi, but JPY should also be tracked very closely this week, as BoJ can show up with new comments if the currency will continue to fall. For more about USD vs. JPY and even Nikkie, check our video below, in which I also covered ETH, DXY and Gold.