Higher Yields May Cause Bigger Correction On DXY

Higher yields may cause a bigger correction on DXY, as yields can be still looking for wave 5 by Elliott wave theory.

Yields higher, USD strong, stocks down. Risk-off flows may not be over just yet if yields are in fifth wave. However, when yields will make new high and then top after 5th, thats when DXY can complete B/2 rally, with a lower high, when focus will shift away from US to other CB. However, of course, wave 4 on yields can get more complex if current trendline support is broken, so wave B/2 on DXY may take more time to unfold.

Grega