Elliott Wave Analysis

Elliott Wave: Can FED’s Cuts Send Dollar To 100 Or Lower?Sep 16, 2024

​We have a very important week ahead, with the much-anticipated interest rate decision from the Fed. The focus is not just on whether they will cut rates, but by how much—will it be 25 or 50 basis points? A 25 basis point cut could strike a balance between inflation concerns and potential recession fears, especially considering recent unemployment figures weren’t that bad, and CPI also softened as expected last week. Keep in mind that the dollar has moved lower over the last few weeks, and if we see a 25 basis point cut, the dollar could gain slightly. However, if the Fed opts for a 50 basis point cut, we expect the dollar to continue its downward trend immediately.

From an Elliott Wave perspective, I certainly think that the dollars will break lower, though there could be some intraday rallies in the meantime. Also, let’s not forget on the stock market; it has performed well, with a nice rebound last week, while US yields continue to press lower. So, risk-on sentiment is here and it may not be over just yet. Also, let’s not forget on the euro which has recovered after last week’s ECB rate decision. So everything seems to be pointing to a dollar decline to 100.

Join me in webinar later, where I will cover this and plenty of other markets. We start at 15CET!

Grega

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.

Commodity

Silver Has Topped

Funded Trader Program

Trade our money and collect the profits.

Learn Elliott Waves

Access to more than 7 hours of educational material

Crypto

Coinbase Is Coming Higher Along With Cryptos

DISCLAIMER

Any reviews, news, analysis, prices or other information contained on our website is provided as general market commentary and delivered electronically through a distribution channel to larger number of clients, therefore does not constitute investment advice or investment research. We are not trading advisors. Most of our work is for educational purposes only, with information based on Elliott Wave theory in real time. Trading forex, futures, options, stocks, cryptocurrenices or any another trading market carries a high level of risk, and may not be suitable for all investors.

The possibility exists that you could lose some or all of your initial investment; therefore you should not invest money that you cannot afford to lose. Our website and the information that we provide should not be relied upon as a substitute for extensive independent research before making your investment decisions. In no event will we be liable for any loss or damage on your account in connection with, the use of our products. For any real cash investments you have to contact your financial advisor.

Any information or material contained on our website is owned by Val Global d.o.o.. Reproduction is prohibited without Val Global d.o.o. prior license in writing.

By continuing to use the site, you agree to the use of cookies. Learn more.

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close