US Yields have topped back in October 2023 with sharp leg down, which is from Elliott wave perspective first leg A of a deeper A-B-C decline that can send the price back to the former wave 4 area to 3.25% - 2.5%. At the same time, we can see USdollar Index - DXY also turning down due to a positive correlation with Yields, we just saw some divergence in 2023.
Currently we can see some recovery for the USdollar, as Yields are in a corrective rally within wave B, but as soon as wave C shows up, USdollar can be back to bearish mode. If we respect technical analysis, Elliott wave theory and positive correlation in the markets, then Yields could send USdollar - DXY lower away from important trendline connected from the highs soon.
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MIL:US Yields and #USdollar are turning lower as expected! Can we see more weakness ahead of NEWCONNECT:NFP today?