The US stock market did not produce any breakout yesterday. We see slow price action as traders and investors still await the US CPI report.
While stocks are sideways, the USD is still looking lower, and it may see further weakness from here as many majors show just minor corrections within an uptrend.
However, some dovish comments by ECB Governing Council member Mario Centeno said that rates-raising could be approaching the end.
We are not convinced how they will fight 10% inflation then. From an Elliott wave perspective, we see prices climbing higher into a fifth wave, now breaking to a new high, so there can be more upside.
But there is still a chance for a setback and a retest of the channel near 1.07/1.0713 before recovery resumes. The ideal upward projection for a current intraday bull run is at 1.08/1.09.