Elliott Wave Live: Bitcoin Sell-off Resume Despite Risk-on

Good morning everyone, I hope you had a wonderful weekend.

I hope you had a wonderful weekend. As you know, markets are still in a risk on mode when looking at stocks, while US yields are coming lower as US Treasuries continue to recover. In fact, when looking at the June Treasury futures contract, it seems like the recovery unfolded in five waves, which puts yields in an interesting position here because we could now expect at least a three wave pullback on the 10 year futures. That could still support the dollar in the near term, especially as the Dollar Index itself is approaching an important support zone.

It would not be a surprise to see some rebound on the dollar because notice that we may be forming a flat correction that is now slowly approaching the 38.2 percent retracement around the 98.50 area. For that reason, be aware of a potential rise back towards the upper side of the range this week.

The main market drivers this week could of course be any progress regarding a potential deal between the US and Iran, while some fresh Nvidia comments from the CEO could also continue to support stocks. However, the most important event later this week will definitely be Friday’s NFP report from the US.
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We covered all of this in our webinar below