Dollar Focus

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Here we are tracking the Monthly chart in Dollar from an Elliot Wave perspective; after 15 years of the previous bullish USD cycle we are reaching the end of the road. To put simply, we are tracking NFP for any early confirmations that the current retrace leg (wave 2) has finished.

For the Weekly we have two simple flows to track;

Long term uptrend is clear as day...


Highs cooking in Dollar


On the Macro side we have ISM and Manufacturing numbers crumbling and catching up with the global slowdown faster than markets were expecting. After soft data last week, I see US yields continuing to drive lower and in turn pushing up expectations for an October cut.

Markets are tracking for a soft wages print, the USD can short-circuit significantly as the Fed cuts and sends signals of a prolonged slowdown in growth.

Eyes on USDCHF today for the main flow in FX ...

Oversold CHF ... Positioning in USDCHF


Best of luck all those trading today, jump in with your ideas for NFP.
Nota
A noteworthy $ selloff today, an early insight into Q4.
Nota
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