Stocks Will Stabilize When Aussie Finds The Support

FX:AUDUSD   Australian Dollar / U.S. Dollar
Hello traders and investors!

Today we will talk about stocks and Aussie ( AUDUSD ) pair regarding risk-on/risk-off sentiment, so if you are wondering when stocks will be back to bullish mode, then keep an eye on Aussie.

As you can see on the left correlation chart between SP500 and AUDUSD pair, always when Aussie finds the support, we see SP500 stabilization.

Well, if we take a look on the right Aussie chart from Elliott Wave perspective, we can clearly see a corrective movement, ideally a complex (W)-(X)-(Y) decline. We are already tracking final wave (Y), but it has to be finished in three legs A-B-C and as you can see, wave C is still missing.

So, if we are on the right path, then stocks might not be ready for a bull-run yet, until Aussie fully completes its corrective decline, where final leg may also occur as a spike down like back in March 2020 and January 2019.

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