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Last week we saw some recovery in stocks, and positive price action is continuing at the start of this week. Stocks could rise even further in the short term, supported by optimism around potential tariff changes by the Trump administration, which may cancel some previously planned tariffs. Additionally, ongoing optimism regarding Ukraine-Russia negotiations is helping support markets. If stocks continue upward, even temporarily, the US dollar could weaken further. As you know, we’ve been tracking a corrective recovery on the Dollar Index toward the 104.10 area, which is playing out nicely. Now we could see a new turn to the downside, ideally in wave five of three this week. On the other side, EURUSD should recover then.

With higher stocks, cryptos are showing some sign of life as well, but we shall be tracking some key level on SP500 to define if the low is really in, or is this only a corrective rally.

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