I hope you had a great weekend and are ready for an interesting trading week.
Trump is set to speak with Putin, so there is a possibility of a successful ceasefire that could potentially end the war between Russia and Ukraine. More importantly for the FX markets, we have four major central bank rate decisions this week: the Fed, Swiss National Bank, Bank of England, and Bank of Japan. These announcements will likely bring significant volatility, with the main focus on the Fed decision on Wednesday. Expectations are for the Fed to remain on hold, but they could still surprise by sounding more dovish, especially if they aim to stabilize the markets. Plus, last week’s inflation data came in lower than expected at 2.8% versus the anticipated 2.9%, which could play an important role for Powell to be dovish this week. Lower inflation could keep US yields and the dollar in a downtrend while also helping stabilize the stock market.
When I look at dollar index’s Elliott wave structure, price can be in some intraday corrective rally, which could stops at resistance levels this week, around 104.30 to 104.80.
I talked about this and more in our Elliott Wave webinar below.
GH
Become a premium member
Get daily Elliott Wave updates for SP500,DAX, GOLD, SILVER, CRUDE, FX, CRYPTO, etc. or apply for unlimited access to the Elliot Wave educational videos.