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US Bonds faced a massive sell-off since March 2020, but since October 2022, we can see a nice recovery within a five-wave bullish impulse from the lows, which from the Elliott wave perspective indicates a temporary bottom.

However, in Elliott wave theory, after every five waves, we can expect a three-wave A-B-C corrective slowdown before we will see a continuation higher. After today's US CPI report, we can now see it trading in the 5th wave, but there can be room up to the 116 – 118 area before a higher degree correction shows up with support in the 114-112 zone. So, US bonds are bullish, but carefully this week and be aware of corrections, as we have a lot of important events such as Fed and ECB meetings.

If you want to learn more about impulsive waves, and what this means for the market if we have an impulse from a new low or new high then check our educational video below:

Video Length: 00:10:18

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