The US dollar seems to be trapped in a large sideways range ahead of summer, while stocks continue to push higher. It will be interesting to see if stocks take a pause during the summer, potentially leading to increased volatility during the US elections.
At the same time, we see a significant pullback already happening in metals, with gold and silver approaching some critical levels. If metals can stabilize, I also think the Aussie dollar could perform well. The RBA recently decided not to change interest rates but emphasized their commitment to bringing inflation back to target, which is still far off. These somewhat hawkish comments could potentially keep the Aussie in an uptrend, and I will be tracking potential bullish consolidation on this pair.
I see some nice A-B-C retracement, but support is still a bit lower before this Elliott wave structure can come to an end. I am watching 0.6560 and 0.6550 levels for a potential new turn-up.
Grega